In preparation for IGT's F2Q 2013 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
POST F1Q CONFERENCE CALL COMMENTS
- "On the gaming ops side… the biggest driver of gaming ops yield for us is improvement in gross gaming revenue, which we haven't had a lot of good news in that area lately… We're going to float very closely to gross gaming revenues. We are over-indexed in Nevada and in Native American, because that's where our wide area progressive concentration is and that is the highest yielding product for us… We're expecting a bit of a lift up in our yield, I think, on a going forward basis, expect to see kind of flat yields year-over-year when you think about it on an annual basis."
- "What we're really focused on as a company is looking at the gaming operations assets and making sure we're generating the maximum amount of cash from those assets that we can generate for shareholders."
- "I think we're in steady state actually right now. When we look out over the next couple of years, we think that the game ops capital is kind of at a fixed number for us in our planning. The real money wagering part of the business… we feel very good about that business. Last week, we launched in Mexico. There's only two online gaming license that were granted in Mexico. We also launched in British Columbia, ten days ago, with our real-money wagering. Feel very good about how that is going early."
- [DoubleDown] "We see daily active and monthly active users above our expectations, the projections that we had for the company when we acquired it, the revenue per daily user, the churn rates, the conversion rates, everything that we looked at in the business… I think the most important thing that we expected is when we acquired DoubleDown they were running at about $0.18 a day in revenue per user. They're now at $0.31 per day. We've launched four of our traditional titles that you would see in casinos and those games outperform anything else in the slot content world. So we feel very good about it, top to bottom. We feel good about the margins. We feel good about the track we're on to make it GAAP accretive in 2014 and we're still committed to that."
- "I would say the couple of areas that we feel stress in the business that capital could solve, one is in the talent area. As you move into social gaming and online gaming, the whole war for talent really heats up in that area, particularly on the mobile front. And it's not unusual to do kind of an acqui-hire, where you go and you buy the studio as opposed to hiring people one at a time. So we always have our eyes open for those things."
- "We have $600 million left on our authorization for repurchasing shares. We have that kind of a window of two to four years, depending upon the valuation of the stock."
- [WMS Deal] "So I would say that we haven't seen a lot of movement yet. I do think that it will create more rational pricing in the marketplace than what we have been experiencing for the last year, which, I think, is a good thing. There are a lot of laws in the VLT market around your ability to be both the machine and the system supplier and so those areas where Sci Games is the system supplier they're going to have some issues there with their ability to provide boxes, which we think is a good situation for us, where we have an opportunity to take market share."
YOUTUBE FROM F1Q CONFERENCE CALL
- "Our consolidated average sales price was down, but this was largely a reflection of the higher mix of video lottery terminal sales and a lower percentage of multi-layer display units sold."
- "We expect to leverage our strong revenue growth this year into even higher operating income and earnings per share growth through responsible cost controls and increasingly efficient research and development expenditures, which can now be leveraged to benefit both our land based and online products alike."
- "We expect to resume normal open market repurchases during the remainder of 2013."
- "The domestic replacement market is kind of continuing to bump along… we would say cautiously optimistic with overall replacement, but increasingly optimistic with our opportunity to take more than our fair share of what comes in the market."
- "On the margin side, the uptick in Product Sales margin was really attributable to non-box, in particular intellectual property contributions in the quarter. So we would expect margins to be more comparable to prior year excluding that one-time effect."