SHFL posts record Q1 revenues
CEO Gavin Isaacs eyes newly-regulated New Jersey and Delaware markets for expansion of supplier's online table games
SHFL entertainment has posted record revenues for the first quarter ended 31 January, with CEO Gavin Isaacs targeting the newly-regulated New Jersey and Delaware markets as opportunities for further growth.
A rise in online table games revenue of 12%, from $11.4m to $12.8m, contributed to overall increase of 5% year-on-year in Q1 from US$56.1m to $58.8m for the company.
Adjusted EBITDA dropped 2% compared to the corresponding quarter last year, from $18.3 to $17.9m, while EPS decreased 14% from $0.14 to $0.12.
The expansion of SHFL’s online table games follows recent deals with GameAccount Network to integrate the games into the latter’s European-facing platforms and distribute them to its licensees across the continent, as well as Bally Technologies, which has made them available to operators signing up to its iGaming Platform.
The increased focus on online products saw SHFL appoint Nick Gabriel to head up its online gaming division last year to oversee B2B operations in Europe from the supplier’s new office in Gibraltar, where SHFL was recently licensed as well as in Alderney.
In an analyst call discussing the results, Isaacs highlighted SHFL’s potential in the New Jersey and Delaware online markets, where table games will be permitted. Although only online poker is legal in Nevada, Isaacs was keen to stress the importance of SHFL’s partnership with the Amaya-owned Ongame poker network, agreed in December.
Isaacs said: “I’m pleased with the progress of our igaming segment so far and excited about the opportunities that lie ahead, especially given all the recent movement in the US.
“The significance of New Jersey is that it will allow for casino games, which is where our proprietary table game content falls. The feedback we’ve received has led us to believe that no online casino offering is complete without our leading proprietary table games. We are thrilled by the opportunities that New Jersey and Delaware’s online markets have the potential to offer. Given the time it will take to officially go live, we believe this will be a 2014 event,” he added.
Last month SHFL acquired Chinese games supplier ProTec in a bid to expand its Asian-facing offering, which contributed to 14% of SHFL’s overall Q1 revenues and in January, Michael Daly rejoined the company after several years with fellow Nevada egaming licensee Bally Technologies, taking on the role of VP of online gaming.