• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

ALL management excited about the product at the Show and what's in the pipeline. 

  • 4 years ago, they had virtually no recurring revenue.  Not a big focus on NA.  Systems customers unsatisfied.
  • During the last year, they grew their participation base by 10-11% vs the market growing 6%
  • Depth of their for sale offering increased their productivity.  Australia:  ship share from mid-20s to mid-30s.  Have some work to do in NA for the for sale product where they hold a constant 12% ship share. 
  • ALL is good at penny, high volume games (aka gambling games) and repeat customers.  Their brands have 6-7 years of staying power.
  • They are starting to think about participating more in markets where they don't participate today e.g. the casual/entertainment gamer.  Repacking their old brands works well for them too - "legends strategy".  Feedback from operators is good.  Evolving strategy in the US.
  • Historically never used 3rd party developers.  By next year, they will have at least three major 3rd parties.  Will announce some deals soon.
  • Rich Schneider just joined them from IGT
  • IL isn't a core market for them - low margin jurisdiction.  Plan on being a low cost provider.  They will be selling games in that market with financing.
  • Seeing good growth in their replacement business in Macau
  • NA:  not seeing any change in the market
  • BYI and WMS have not made much traction in Australia - it's a gambling market.  Market grew 15% in the first half.  Ainsworth is #2 in Australia, IGT/SHFL #3, Konami/Aruze #4.
  • Just delivered 250 games to Alberta
  • I-gaming:  ALL has been more cautious on getting to the market.  Their systems customers are interested in getting into the online space.  Want to provide content for that space.  Their strategy will be around an operating partnership.  Launched two of their clients online already to help them market.  An opportunity to gather more data, market their product and their customer.  Pricing like a system now.  IGT giving away their I-gaming stuff to get floor share.  Have their content on European sites.
  • They have 285 casinos on their system.  They are the largest provider by number of casinos.
  • They had a record year in gaming operations this year.  Record install base and record revenue.
  • They have a very balanced portfolio.  They have an arsenal of proprietary database of games. Don't need to do all licensed titles.
  • WAP strategy:  their jackpots hit frequently.  Tarzan on Verve base.  Tarzan had 1300 games originally.  They brought Tarzan and Jane out three weeks ago and it's doing great.  Wheels round- their players always win. 
  • Superman:  positioned as a VIP game/high limit.  Getting approved in December.
  • Cash Express - flat fee or 80/20.  Jackpot driven off coin-in.  Still have 1,200 original Cashman on the floor.
  • Jaws and Mummy are both performing great 
  • For sale games:
    • Wonder4 is the #1 performing game in NA right now.  Sold over 1000 games.  Doing 2-5x house average.  4 Multi-games.  Have a bunch of follow up games as well.
    • Legends:  redeploying the oldie goodies.  Original game and the new game in the same cabinet.  90% of the play came from the new versions.  Launched in Australia and launching in the US - just approved first 2 games this past week.  Still have MAV 500 games out on the floor creating a good replacement cycle for them.
    • Moved Cashman onto the Stepper.  It's their best brand.  Biggest mistake is that when they failed, they had video game designers make steppers. They then hired stepper guys.  Superman is also a participation game on Stepper.  Original Cashman has sold 8,000 units since 2002.  Hired their stepper guys from WMS 2-3 years ago.
    • MAV 500 was released 12 years ago.  
  • Customers telling them this is the best show in 5 years
  • IGT gives away their systems to get recurring revenue and floor share and get master agreements