Multimedia Games (MGAM) Tops Q2 EPS by 4c
In addition to acquiring PokerTek, Multimedia Games (NASDAQ: MGAM) reported Q2 EPS of $0.35, $0.04 better than the analyst estimate of $0.31. Revenue for the quarter came in at $58.2 million versus the consensus estimate of $53.7 million.
“Multimedia Games’ strong second quarter results, including significant year-over-year growth in revenue, operating income, EBITDA and diluted EPS, again highlight the strength of our growing product portfolio, attractive competitive positioning and unique growth opportunities,” said Patrick Ramsey, Chief Executive Officer of Multimedia Games. “The results were driven by an impressive 88.6% year-over-year increase in unit sales as we sold 1,094 games, with continued strength in key markets such as Oklahoma, Washington and Nevada. Our award-winning TournEvent® slot tournament system continues to build on its position as the most effective tournament solution, generating sales of 373 units to a total of 23 casinos in 13 states and cruise lines, with growing excitement and momentum for the 2014 National TournEvent of Champions® which concludes in Las Vegas in early October.
“At the same time, our gaming operations business continues to perform, with revenue increasing 13.0% year over year to a quarterly record of $37.8 million in the fiscal 2014 second quarter. Our installed base of participation games rose 8.9% year-over-year and approximately 1% on a quarterly sequential basis, and we ended the fiscal 2014 second quarter with a total of 12,752 recurring revenue units nationwide, approximately 37% of which are in markets outside of Oklahoma. Our premium participation games continue to gain traction as we added 111 new premium units in the quarter with the mix of premium units as a percentage of our overall installed base rising to 9% of total installed units and 25% of our units installed outside of Oklahoma. The success of these games and improved weather later in the quarter led to a significant improvement in win per day in March and resulted in daily win per unit increasing from the prior-year quarter.”
Ramsey concluded, “These are exciting times for Multimedia Games as we continue to successfully penetrate new markets while increasing the number of our innovative and player-favorite games on slot floors in the Company’s more established markets. To that end, the combination of our upcoming Maximum Player Experience™ premium participation cabinet and its launch titles, Thundering Herd™ and Invasion 2: The Return™, further highlight our commitment to creating entertaining gaming experiences. We believe this fully interactive slot gaming experience embodies the capabilities of our Austin-based development teams and are excited that these new products were recently recognized by Casino Journal and Casino Enterprise Management as among the industry’s best new technologies and products. We expect these offerings to drive further growth in our installed base and win per day in fiscal 2015. We are energized by our newest product offerings and new market opportunities.”
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