Our notes from BYI's pre-G2E Sunday presentation.
Management Commentary
- Alpha 2 platform and first alpha 2 games
- Uspin technology
- iView network/sale pipeline
- BYI preliminarily selected by the British Columbia Lottery Commission and Ontario Lottery Gaming Corporation as the systems provider - 20,000 games (3,500-4,500 per game); still going through the procurement process. If they are contracted, installations would begin summer 2011 at the earliest and would take a few years to deploy.
- Systems:
- In the last few years, systems hasn't grown much : 206, 212, 218, 220-235mm in FY2011. Although, the economy has been challenged as well.
- Average of 2.4 new customer sites added per month. Have about 615 clients now. This is equivelent to 1,700 slot machine additions per month. Customer slots - 418k connected worldwide through BYI systems.
- Top peforming casinos use BYI:
- LA: 13 of the top 17
- IN: 8 of the top 12
- NY: 6 of 8
- PA: 6 of 9
- For FY2008-2010, BYI has had 149 major new installs ,201 upgrades, and 245 add-ons
- Core products:
- Multi-property (few companies have this function)
- Universal card (few companies have this function)
- Offline ticketing (will continue to print even if system goes down)
- Live floor view
- Smart card
- 2 way downloadable credits
- Game reservation (allows customers to lock games for 30 minutes so no one else can play them)
- High limit jackpot
- Table View:
- Have over 80 sites and almost 4,000 tables connected. Sold more table views last year than all the years combined (won all of PA); added 2,500 tables.
- Only system where casino doesn't need to replace chips or tables - Optical chip recognition and automated bet tracking - not RFID
- Revenue generating products:
- iVIEW DM only floor-wide solution
- Supports all protocols (which their competitors' windows can't do)
- On 1,200 devices at Pechanga - with iView. Wheel allows them to market to customers at the point of play. Virtual racing app: carded play, rated play and card requested all increased.
- The virtual racing--will come out in a series of games
- Drink ordering tool allows them to advertise certain alcohol and make money that way
- Also can send customer rewards right to the game instead of mailing stuff to their house
- Also allows them to market perishable inventory (food/hotel rooms/show tickets)
- New casinos: 70k slots--3500 per game--is 245MM opportunity
- WMS's bonusing only works on their own devices. WMS's bonusing isn't integrated into the casinos' systems. Today, WMS's systems are approved as gaming devices, not systems.
Q&A
- 70% of their systems revenue has been generated from their existing customer base. Canada is obviously new. It's been 70% for the last 3 years. When an existing customer has a new opening, they count that in the 70%.
- The $3,500-4,500 price in Canada doesn't include maintenance revenue. Maintenance starts 90 days after go live.
- 3 of the top Konami salespeople joined them over the last few months.
- Canada RFP for units: doesn't think that winning the system will help with slots. Alberta was awarded to IGT and Speilo 50/50.
- IL - still see it as a large market but it can slip into the Dec '11 quarter. Think that they have a good product there. Time frame of IL roll out - best guess is 6 quarters.
- Acqueduct timing: plan to open April/May 2011 at 50%. Numbers should be better than Yonkers.
- Part of what they did to improve their video product was open up lots of studios - former ALL guys, WMS guys and Atronic deal no deal guys. Alpha 2 is also a better platform. Have 50% more studios.
- Australia - expect it to be breakeven, maybe a penny this year, but after that, they expect it to contribute 5 cents per year. But they also expect to be able to export the successes they have there back to the USA.
- Thinks that WMS's lawsuit is about Cash Spin. BYI just filed a response to WMS's suit.
- IGT anti-trust and bonusing still left - not expecting any news on that for 6 more months.
- Feel like iView DM pipeline is pretty exciting.
- Can put it on a competitor's system but are staying away from that now. Applications will be initially licensed but can switch it to recurring revenue.
- Out of the 420k slots connected - 100k can't do bc of economics and then half don't have high speed internet; so about 150k slot opportunity for iView DM. Marketing department limitations for customers are also a barrier.
- Cool new games:
- Love Meter
- Cash Wizard
- Golden Pharoah - has a horizontal wheel
- Alpha 2: 4 screens, speaker system, emotive lighting, hot zones, iDeck.
- 260 games at show
