• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

G2E 2017 most important casino show in years: Telsey

Sep 06, 2017 Newsdesk Latest News, Trends & Tech, World  


G2E 2017 most important casino show in years: Telsey

This year’s Global Gaming Expo (G2E), a Las Vegas-based casino industry trade exhibition and conference, could be “the most important G2E in years” for listed casino technology suppliers, says a note from analyst David Katz of Telsey Advisory Group LLC.

“This year’s event bears greater importance than the past several and could have a greater impact on the related stocks,” he stated.

“Ultimately, some of the companies’ stocks have performed exceedingly well and they will need to make a case for further upside while others have underperformed and will look to the event to gain traction with investors.”

The G2E 2017 trade show takes place at Sands Expo at the Venetian Las Vegas, from October 3 to 5, with the conference portion of the event running from October 2 to 5.

“Our view on its [G2E 2017’s] importance is based on the operating environment for gaming equipment suppliers as well as their company-specific dynamics, including personnel changes, leverage and key product turnarounds,” wrote Mr Katz in a Tuesday memo.

His note came the same day that casino equipment maker International Game Technology Plc announced it had reached what it called a “patent cross-licensing agreement” with one of its biggest market rivals, casino technology and lottery services provider Scientific Games Corp.

“IGT has reached an inflection point in its product offerings and has guided toward a strong conclusion to the year based on the new product it is introducing,” said Telsey.

Hotter competition

“Scientific Games has generated modestly positive quarters, which have a profound impact on the equity. Finally, Everi is gaining momentum with its new cabinets and content and expects to accelerate its sales and placements going into 2018, when it could refinance its most expensive debt. We also contemplate whether Aristocrat Leisure can continue its strong momentum in an increasingly competitive landscape,” added Telsey’s Mr Katz.

The latter references were to Everi Holdings Inc – a specialist in cash handling technology and electronic game content for the casino industry – and Australia-based slot machine maker Aristocrat Leisure Ltd, which also has a major presence in North American markets via its Aristocrat Technologies Inc unit.

IGT is the result of a US$6.4-billion leveraged merger – completed in April 2015 – between International Game Technology, a Nevada-based supplier of slot machines, and Italy-based lottery equipment specialist GTech SpA. IGT’s net debt as of June 30 stood at US$7.00 billion, according to its second-quarter results.

Scientific Games, initially a lottery equipment and management services provider, purchased the then top-four U.S. slot supplier WMS Industries for US$1.5 billion in 2013. Also in that year, slot machine and casino floor management system supplier Bally Technologies Inc acquired casino electronic tables games and electronic shuffler specialist SHFL Entertainment Inc, known by the brand name Shuffle Master, for US$1.3 billion. In November 2014, Bally – along with the Shuffle Master brands – was absorbed into Scientific Games in a deal valued at US$5.1 billion.

At the end of June, Scientific Games had total outstanding debt of US$8.18 billion, according to its second-quarter results, issued in late July.

Everi Holdings saw its net loss widen in the second quarter of 2017, despite the firm posting higher revenues. The Everi brand was formed in August 2015, following a US$1.1-billion cash-consideration merger in December 2014 of Las Vegas-based Global Cash Access Holdings Inc and Multimedia Games Holding Co Inc.

Conservative approach

Aristocrat Leisure has been perhaps the most conservative – in acquisition spending terms – of the larger casino technology firms still standing following the flurry of consolidation seen in the sector since 2013.

In July 2014, the group agreed to acquire Video Gaming Technologies Inc – a U.S.-based gaming machine provider – for US$1.28 billion in cash. In February 2015, Aristocrat Leisure said the deal had been “highly accretive” to the group’s U.S. operations, more than tripling U.S. recurring revenue.

In July 2014 Aristocrat Leisure also announced the acquisition of all material assets of U.S.-based Paltronics Inc – a leading supplier of jackpot managers and display systems for casino games – including intellectual property relating to products. Aristocrat Leisure did not disclose the terms of the deal.

On August 10 this year, the firm said it had an agreement to acquire social gaming company Plarium Global Ltd for a consideration of US$500 million.

Aristocrat Leisure’s first-half fiscal year net profit for the period to March 31 rose 57 percent year-on-year, the firm said in a May filing to the Australian Securities Exchange.

The group said net gearing improved from 1.9 times at March 31, 2016, to 0.9 times at the end of March this year, due to earnings growth and significant free cash flow generation across the group.

An autumn 2016 report from Fitch Ratings Inc said Aristocrat Leisure had debt to earnings ratios “superior to [its] major U.S.-based gaming supplier peers,” providing “ample financial flexibility to counter the industry’s secular challenges”.

Referring to the North America regional market, Telsey stated in its Tuesday note: “Our view is that IGT and Everi should be modest takers of [market] share over the next few years while Scientific Games and Aristocrat could moderate [market share]. Perhaps more important is that the sale of slots in North America has become less important… given the broad-based business that each of the companies has become.”

The global industry for gaming equipment supply generated in 2016 a “total economic impact” of US$47.5 billion, supported more than 212,000 employees, including 55,000 direct employees, and paid a total of US$4.9 billion in direct wages and salaries, claimed a report released in May by the Association of Gaming Equipment Manufacturers (AGEM).


  • tweet
Related articles
  • Aristocrat heralds new MarsX Portrait slot cabinet, games
    Aristocrat heralds new MarsX Portrait...

    Feb 19, 2021  

  • IGT extends banking deal via Global Payments for IGTPay
    IGT extends banking deal via Global...

    Feb 17, 2021  

More news
  • Galaxy Ent 4Q EBITDA up 207pct sequentially: firm
    Galaxy Ent 4Q EBITDA up 207pct...

    Feb 25, 2021  

  • Int Ent half-year loss up, mulls financing for Manila IR
    Int Ent half-year loss up, mulls...

    Feb 25, 2021  


Latest News

Galaxy Ent 4Q EBITDA up 207pct sequentially: firm

Galaxy Ent 4Q EBITDA up 207pct sequentially: firm

Feb 25, 2021  

Macau casino operator Galaxy Entertainment Group Ltd reported adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) of HKD1.0 billion (US$129.0 million) for...
Read More
Int Ent half-year loss up, mulls financing for Manila IR

Int Ent half-year loss up, mulls financing for Manila IR

Feb 25, 2021  

Kangwon licence extension to come with tax rejig: JP Morgan

Kangwon licence extension to come with tax rejig: JP Morgan

Feb 24, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day


US$390.2 million

Net loss posted by Macau casino operator SJM Holdings for full-year 2020



Most Popular

  • Macau casino GGR soared in final days of CNY: brokeragesMacau casino GGR soared in final days of CNY: brokerages February 23, 2021
  • Pansy Ho sells off more stock in MGM Resorts for US$36mlnPansy Ho sells off more stock in MGM Resorts for US$36mln February 23, 2021
  • Macau removes last mainland cities from its quarantine listMacau removes last mainland cities from its quarantine list February 23, 2021
  • GEG in US$1.6bln construction deal on Galaxy Macau Phase 4GEG in US$1.6bln construction deal on Galaxy Macau Phase 4 February 22, 2021
  • Caesars out of Korea, ex-partner R&F asks 3yr delayCaesars out of Korea, ex-partner R&F asks 3yr delay February 19, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us