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CR62-p60&61-Business0&2:SJC-Casino Review 25/11/07 02:13 Page 2
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Having cleared its last members of the company’s WPT Enterprises, which licenses its WPT games for television and
regulatory hurdle in early founding family, notably Frank has recently started an online poker site, has recorded a net loss of
November, approval from the Fertitta and Lorenzo Fertitta,
Q3 Loss
$2.2m (1.49m euros) in the three months to the end of September
National Indian Gambling CEO and president following a decrease in revenues to $4.4m (3m euros), from $5.9m
Commission, Station Casinos respectively. The deal was for (4m euros) in the same period last year. The company blamed fewer
Station Casinos
has completed its buyout by approved by holders of 79 per
WPT
domestic TV episodes being delivered in the period, and
investment company Fertitta cent of the stock in August. consequently fewer licensing fees. However, it expects things to pick
goes private Colony Partners for $5.4bn. up in Q4 with five episodes of WPT television series to be aired. It is
The purchasers include projecting revenues in excess of $4m (2.7m euros).
Bally returns to profit
Having regained its
$202.4m (136.9m euros), con- from $147m (99.4m euros) acceptance of Bally products
confidence in
tributing to an annual figure with Systems accounting for during the year. Margins on
of $682.3m (461.5m euros), another $134.1m (90.7 machine production also
producing gaming up 26 per cent on the previ- euros). This year a slightly increased to a satisfying 36
machines that
ous year. Net income for the larger portion of the revenues per cent, up from 19 per cent
people want more
year increased to $22.3m (51 per cent) were generated on the previous year thanks in
(15.9m euros) from a net loss by machine sales than by the large part to the increased
and more to play, of $46.1m (31.2m euros) in other revenue streams. This selling price but also due to
Bally Technologies is
2006. compares to 46 per cent of the reduction in inventory
seeing its success
The improving figures are revenues machine sales con- costs, an $11.4m (7.7m-euro)
due to increased sales of tributed last year,when the increase in parts and conver-
now reflected in its gaming equipment and, in company made an operating sion kits revenue and manu-
results, which show
common with other major loss of $30.6m (20.7m euros) facturing efficiencies deriving
an across-the-board
manufacturers, ever increas- against an operating profit of from greater volumes.
ing revenues from operations, $79.8m (54m euros) in 2007. Richard Haddrill, CEO of
improvement. both participation games and The number of machines Bally Technologies, com-
systems. sold reached 21,372 in the full mented: “Our fourth
profitmotive Gaming equipment rev- year, compared to 17,887 in quarter…results are begin-
BALLY TECHNOLOGIES enues in the fourth quarter 2006. They sold for an average ning to reflect the improved
were up by 46 per cent to $12,617 (8,533 euros) each, financial and operational
CEO of Bally
Technologies,
Bally Technologies recorded $104.7m (70.8m euros), up from $10,182 (6,886 strength of Bally. In addition to
Richard
earnings of $18.5m (12.5m immediately following a 37 euros) in the previous year. a 31 per cent increase in total
Haddrill
euros) in the fourth quarter of per cent increase in machine The rate improved, says the revenue, we are pleased with
the year ended 30 June, a dra- sales in the third quarter. In company, with the phasing our progress on margins, espe-
matic improvement on the the full year, revenues were up out of introductory offers cially the 41 per cent in game
$12m (8.1m euro) loss posted by 44 per cent to $324.1m associated with the sale margins. We expect this
in the same period last year. (219.2m euros). Revenues company’s Alpha OS platform momentum to continue to
Revenues for the quarter from operations reached games and with reduced dis- drive improved performance
increased by 31 per cent to $176.4m (119.3m euros) up counts due to increased into…2008.”
Record
MGM Grand, one of the
flagship casinos in the group
returns
for MGM
Mirage
in Q3
solidreturns Katrina, contributing $107m ing to attract large numbers.
MGM MIRAGE (72.4m euros) to the plus side Jim Murren, COO and pres-
of the balance sheet. The ident of MGM Mirage, com-
The world’s second largest remaining $28m (18.9m euros) mented: “Key volume
casino operating company, offset general and administra- indicators that we have come
MGM Mirage has reported tive expenses. In its first full to rely on to gauge our Las
third quarter earnings up 18 third quarter since reopening Vegas business remain
per cent to $183.9m (124.4m in 2006, Beau Rivage earned strong. These metrics suggest
euros) from the same period an operating income of $145m continued growth over the
last year. Net revenues (98m euros). upcoming quarters. We have
increased to $1.9bn (1.3bn Overall operating income many opportunities to
euros), up six per cent, a was up 11 per cent to $465m increase our future profits
record for the company. (314.5m euros), thanks to a full through initiatives deployed
The results were driven by quarter’s contribution from throughout the remainder of
hotel earnings and property the re-opened venue. this year and into 2008. The
transactions with gaming Hotel room occupancy opening of our Detroit resort
remaining flat when the three rose by one percentage point has been a tremendous
per cent boost from Beau to an even more impressive success and we are only a
Rivage is discounted. 97 per cent, with average couple of months away from
However, several Las Vegas daily rate increasing by $7 to opening in Macau. Both of
Strip resorts posted solid $147 (99.4 euros) and revenue these resorts will substantially
increases in slot revenues per available room up $8 to add to our future cash flows
over the prior year, including $143 (96.7 euros). Food and and earnings.”
Bellagio, MGM Grand and beverage revenues
Mirage, which were up eight increased by ten per
per cent, and Mandalay Bay, cent, with restau-
which was up nine per cent. rants and nightclubs
Overall slot revenues in Vegas in the group experi-
were up by two per cent. encing higher
The property transactions volumes. Entertain-
were boosted by $135m ment revenues rose
(91.3m euros) in insurance by 13 per cent with
recoveries for the Beau the Cirque du Soleil
Rivage following Hurricane productions continu-
December 2007 businessnews 61
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