Wednesday, Feb. 2, 2011 | 1:51 p.m.
Casino supplier Bally Technologies Inc. of Las Vegas today said revenue and profit fell in its second quarter ending Dec. 31 as casinos ordered fewer slot machines.
The company posted a profit of $27.3 million or 49 cents per share, down from $33.3 million or 58 cents in the year-ago quarter. Revenue of $182.7 million was down from $205 million.
Gaming device sales fell from 4,997 units to 3,468 units, causing revenue from this segment to fall from $79 million to $59 million.
Bally in its earnings announcement today noted "a continued sluggish North America replacement market and fewer new openings and expansions during the quarter."
Revenue from slot machine sales was affected by the average selling price for new units increasing by 7 percent to $15,244.
Gaming operations and systems revenue both increased. Operations was up 12 percent to a record $77 million and systems was up 14 percent to $46 million.
CEO Richard Haddrill said in a statement: "We continue to see excellent growth opportunities for Bally in Canada, Italy, Australia, Mexico, New York and selected other U.S. and international jurisdictions."
"Calendar 2010 represented one of the toughest environments for replacement and new game sales," Gavin Isaacs, chief operating officer, said in a statement. "As we look towards calendar 2011 and beyond, we expect to see both an improvement in replacement demand and jurisdictional expansions.''
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