In preparation for IGT's F2Q 2013 earnings release tomorrow, we’ve put together the recent pertinent forward looking company commentary.
YOUTUBE FROM Q1 CONFERENCE CALL
- [International] "There are systemic issues that have impeded participation in some markets, which we are working to overcome. And the economic headwinds in certain regions continue. However, we remain committed to harvesting the investments that we have made in this business particularly in expanding our portfolio of localized content. Long-term, we still expect international markets to outpace the growth of our North American business."
- "We now expect that our objective of achieving flat year-over-year yield by the fourth quarter will be more challenging than previously anticipated. However, we remain focused on improving yields, confident that we can continue to offset a portion of yield pressures by managing costs."
- "Looking forward, we expect to see a decrease year-over-year in our gaming operations capital expenditures, driven by a decline in installations."
- [Doubledown] "As we develop these markets, we expect that the number of daily active users will grow, but the average revenue per daily active user could decline slightly...we continue to expect the transaction to be GAAP accretive by 2014."
- [Product Sales margins] "Traditionally, we're in kind of the low 51% to 53% range and that's where I would expect it to stay over the remainder of the year."
- "We do need some cooperation from GGR trends. And I would say, over the first two quarters of our fiscal year, we haven't seen anything to indicate that we're going to get some positive tailwind in that area."
- [Operating expenses] "We expect it to retrench back to where it was in the first quarter, say, for costs associated with marketing and promoting DoubleDown, where we do engage in some direct – marketing expenses. We'll be in line or probably grow less than the revenue growth that we experienced, as is the case this quarter."
- [Canadian VLTs] "We expect at the moment that we should see the vast majority of the remaining units ship in the year. But keep in mind these are large bulk orders and depending on either customer needs or other impacts, you could see swings and sometimes those swings border on a quarter. Right now I would say that we believe the vast majority of the remaining shipments will occur in the year. And then there may be some follow on activity as locations top off their floors in 2014."
- [Doubledown] "We think we have the right product in place complemented by the IGT content to continue to grow those numbers. I mentioned we're penetrating a couple of different markets with new language offerings and we expect that will drive DAU though it may slightly impact bookings per daily active user. As you get into a market you need to build familiarity before you can convert to paying users. It's incredibly difficult to precisely identify which metric is going to go up. Lately we've seen them all rise and we continue to expect to make forward progress in all and we will continue to balance that which will provide us the greatest long-term return. So I think you can expect to see them move north."
- [International systemic issues] "Europe tend to be more macro. The other two (Latin/South America, Asia Pacific) as we look at them probably have more of a systemic issue within the structure of how they allow the business to operate.