U.S.-based Global Cash Access Holdings Inc posted a year-on-year revenue increase of 42 percent in the second quarter, to US$206.4 million.
Its revenue included US$54.9 million from the games segment and a 5 percent year-over-year increase in the payments segment, the New York-listed firm announced on Tuesday.
After the US$1.2-billion acquisition of Multimedia Games Holdings Co Inc by way of merger in December last year, Global Cash Access changed its organisational structure to include two divisions. One includes its original payment business, namely the supply of cash processing technology and related services to the gaming industry. The other division features what was Multimedia Games’ business of supplying systems, content and electronic gaming units for casinos.
“Our second quarter results highlight ongoing positive momentum in both our games and payments businesses,” stated Ram V. Chary, company president and chief executive.
He added: “Our ability to grow in a flat market is unique in the gaming supplier space and we are proud of this accomplishment.”
Mr Chary confirmed that the company plans to double its game development studios from eight to 16 studios and is preparing “a rebranding of the organisation that will fully reflect our larger scale of operations and gaming industry focus”. Brokerage Sterne Agee CRT had first mentioned the rebranding earlier this month.
Global Cash Access operating income for the second quarter – inclusive of a US$0.4 million impact for the acquisition of Multimedia Games; other costs related to the merger; and the impact for purchase accounting adjustments – was US$16.3 million compared to US$9.6 million for the same period last year.
Inclusive of a non-cash charge of US$13.0 million related to a loss on extinguishment of debt, Global Cash Access recorded a loss from operations before income tax provision of US$21.6 million compared to income from operations of US$7.5 million for same period one year earlier.
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