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Takeaway: Despite the ugly quarter, IGT gains share

Now that Aristocrat has reported its 1H2012 results, we can tally up results for ship share in 1H2012.  Below are our observations:

  • IGT gains the most share in 1H2012, garnering 33% share of the market, up 350bps YoY
    • An abnormally large number of used units and shipments to Canada drove part of the gain.  In 2Q12, IGT shipped 1,700 used units to N.A. compared to a normal run rate of 500 used units.  If we strip out the used units, then IGT’s share would have increased over 2% YoY to 30% in 2H12.
  • WMS was the biggest share loser in 1H12, with ship share falling to 19% from 23% in 1H11
  • Konami wasn’t far behind WMS, losing 300bps of market share YoY.  Konami ended 1H12 with ship share of 12%.
  • BYI gained less than 1% of market share, ending 1H12 with 16% share.  Despite having better product, their share could have been impacted by maintaining higher pricing and less discounting than their competitors.
  • ALL’s share fell over 100bps to 10% in 1H12.   
    • The company’s share loss would have been greater if not for the estimated 370 refurbished units sold in 1H12.  If we strip out the refurnished units and IGT’s used units, ALL’s share should have fallen slightly less than 2% YoY.
  • MGAM, while very small, was the second largest share gainer in 1H12.  They gained almost 1% of share, moving up to 2%.
  • We suspect that Speilo’s share also saw a big spike in 2Q12 given their material participation in the Canadian replacement market.  This should hold true through 2013, given their large market share in Canada. 

1H2012 SHIP SHARE OBSERVATIONS - slot