Online activity sees WMS revenues soar

Posted on November 2, 2012 by t.washington

Chairman and CEO Brian Gamache predicts annual revenue from interactive to reach at least $35m in fiscal 2013

A US$9m year-on-year growth in revenue from interactive products and services has seen WMS Industries record first quarter turnover of US$159.1m.

In its first set of results since making two online acquisitions earlier this year, WMS Brian Gamache chairman and CEO said the company was generating “very exciting” growth from interactive products.

Its online products and services revenue, that now sits within a separate division entitled William Interactive, increased to $9.5m for its fiscal first quarter of 2013 from $0.7m in the same period in 2012, primarily reflecting the launch of Jackpot Party social casino on Facebook in July this year.

Organic growth in WMS’s UK-based B2C online website and the addition of the newly-acquired Phantom EFX and Jadestone businesses were also cited as major contributors to the boost in revenues.

“We are extremely pleased by the initial success we are achieving in leveraging the value of our library of proven gaming content into the interactive markets, including social, casual and mobile entertainment,” said Gamache. “This success is reflected in the $9m year-over-year growth in revenue from interactive products and services, and we anticipate a range of $35-to-$40m in annual revenue for fiscal 2013 from these revenue streams.

“While the costs needed to build a sustainable foundation for interactive products and services impact near-term operating profitability, we believe this investment favorably positions WMS to participate in the attractive, high-margin growth potential of these opportunities that can lead to the creation of new value for our shareholders.”

Williams Interactive CEO and president, Orrin J. Edidin (pictured), said in yesterday’s Q1 earnings analyst call: “If you consider the approximate $34m all-in cost to acquire Jadestone and Phantom, add in the $18m of costs to originally license the IP and create a technology foundation for our jackpotparty.com online platform several years ago, and then add in the expense we incurred over the past two years and the expected $30m to $35m in incremental expense that Scott mentioned for fiscal ’13, you’d see that the total investment for WMS to enter these three new revenue streams was much less than $100m spread over multiple years.

“…we believe the foundation we’re building today in interactive products and services will be an important contributor to the WMS revenue stream and profitability story over the next several years.”

Overall the company, that specialises in the manufacture of lottery terminal and slot machines, saw revenue from gaming operations grows 4% to $71m compared to the same period last year, while gross profit increased by $4.1m.

The past 12 months have seen WMS establish a varied online business, launching a separate division entitled Williams Interactive to manage the offering in July this year.

Later that month, the Jackpot Party-branded social casino on Facebook was launched, followed by the Nevada licenced WMS signing a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, aimed at allowing it to offer 888’s online poker product to US casinos.

In April it announced that Jackpot Party would host Groupe Partouche’s Belgian-facing casino offering, where the operator is one of just four to hold a top-level ‘A+’ licence.

In September WMS launched its freeplay casino product Play4Fun Network with its first client, a tribal casino in Iowa, enabling the casino’s players to access multiple play-for-fun slot and casual games online, all under the casino’s own brand.

Meanwhile October saw the company sign multi-year licensing agreements with Swedish operators Betsson and Unibet Group. The deal allows Betsson and Unibet access to WMS’ games offered by Jadestone, following May’s acquisition of the Swedish games developer. The portfolio also includes games offered by WMS’ UK-facing site Jackpot Party which went live last year.

WMS and Stratosphere set for Nevada licence hearing

Posted on August 31, 2012 by r.weston

Licence applications on Gaming Control Board agenda for 6 September

WMS Gaming and the owner of Las Vegas’ Stratosphere Casino will have their applications for online poker licences in Nevada considered by the Gaming Control Board (GCB) on Thursday.

If recommended by the GCB, the Nevada Gaming Commission will decide whether to award the licences at its next meeting on 20 September.

Illinois-based WMS has applied for manufacturer and service provider licences, while American Casino & Entertainment Properties (ACEP), the holding company for Stratosphere, had applied for operator and service provider licences in February but has since requested to withdraw its service provider application.

If successful, ACEP will become the third operator in the Silver State allowed to offer online poker, following the licences awarded to South Point Poker and Monarch last month.

WMS Gaming has been providing slot machines, video terminals and game software for casino operators – both land-based and online – since 1999. This year it announced a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, and acquired online gaming content developer Jadestone Group as well as social and mobile game developer Phantom EFX.

WMS’ egaming division Williams Interactive, launched in July, has released two social casino games on Facebook and its UK-facing brand Jackpot Party has launched several online slots this year.

More than 30 companies have applied for Nevada licences, including twelve operators, with Golden Gaming becoming the latest to submit an application last week.

NRT Technology and Sartini Synergy Online are the most recent applicants, with both companies applying for service provider licences.

WMS growth continues as online arm plots success

Posted on August 7, 2012 by t.washington

Casino game supplier “sharpens its focus” of online opportunities with $30m of acquisitions

WMS Industries has recorded its third consecutive quarter of revenue growth as it looks to broaden its services with investments in online gaming, the company announced last night during a Q2 presentation.

The US casino game supplier posted an uplift in revenues of $19.9m to $195.5m, or 11%, for Q2 compared to the previous quarter. Net income for the second quarter was $22.1m compared to $10.3m during the same period last year.

The June 2012 quarter earnings also reflect acquisition-related expenses, the company said in a statement. This was attributed to its purchase of two online gaming business for US$16.4m. WMS said it had “sharpened its focus” of online, social, casual and mobile gaming products and services. Q2 saw WMS complete the acquisitions of online gaming content developer Jadestone Group and social casino games developer Phantom EFX.

However Orrin J. Edidin, president of WMS Industries and CEO of the company’s newly created egaming arm, Williams Interactive, said the total cost of the Jadestone and Phantom EFX entities including potential additional considerations amounts to nearer $32m.

“We believe that increasing our focus on this rapidly evolving growth area in facilitating investment, expansion and extension of our interactive products and services will allow us to provide what our customers need to be successful in these channels,” he said in Monday’s earnings call.

Brian R. Gamache, chairman and CEO, added: “We have enhanced our focus and accelerated spending in a measured manner to build a comprehensive suite of interactive products and services that provide our customers with solutions that enable them to benefit from interactive gaming opportunities.
“While this spending impacts near-term financial results, we believe it favourably positions WMS to participate in the tremendous high-margin growth potential of these opportunities that will create longer-term shareholder value.”

Last month WMS announced it was forming a new division, Williams Interactive, to focus on egaming opportunities. The new entity will be headed up by Orrin J. Edidin, president of WMS Industries, and will concentrate on its online wagering, social, casual and mobile gaming offerings in order to “capitalise on the emerging industry’s significant potential growth opportunities by supporting casinos’ participation in these new distribution channels”.

July also saw company announce a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, to pursue both social and real-money online poker in the US, when legally permitted.

WMS opens new technology development centre

Posted on July 26, 2012 by r.weston

Game development hub in Chicago is designed to “inspire employee creativity and productivity”

WMS has opened a state-of-the-art technology development centre in Chicago, Illinois, to house its game development studios.

WMS CEO Brian Gamache and Orrin Edidin, president and CEO of newly formed Williams Interactive, which last week launched its second social casino on Facebook, attended yesterday’s grand opening.

Gamache said of the new centre: “This state-of-the-art addition to our Chicago Technology Campus is a very visible part of WMS’ ongoing commitment as an ‘Employer of Choice’ to provide a stimulating, desirable and sustainable workplace environment. We expect the building’s design will further inspire employee creativity and productivity, deepen our legendary ‘Culture of Innovation,’ while preserving environmental resources.”

The 120,000sq ft building includes four game development studios, two game laboratories and two product testing showrooms. Designed to be environmentally sustainable, it includes a living roof designed to absorb sunlight and improve insulation, and a computer-controlled, advanced building system linking sunlight and temperature to automatic window shades and lighting. The rooftop area includes a river-side courtyard with benches, new trees and plantings, decorative lighting and bicycle racks.

This month saw the Nevada licence applicant sign a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, aimed at allowing WMS to offer 888’s online poker product to US casinos.

It also strengthened its egaming potential last month by acquiring social and mobile game developer Phantom EFX. The deal followed WMS’ acquisition of online gaming content developer Jadestone Group in May.
The opening was also attended by Illinois Senate President John Cullerton, who introduced an intrastate egaming bill in May and plans to reintroduce it in the fall veto session.

WMS launches second social casino on Facebook

Posted on July 19, 2012 by r.weston

Newly-created subsidiary Williams Interactive releases Jackpot Party-branded offering in follow up to Lucky Cruise

WMS’ newly created egaming division Williams Interactive has released a Jackpot Party-branded social casino on Facebook.

Jackpot Party social casino includes six of WMS’ slot themes including Zeus II and Invaders from the Planet Moolah, while the company explained in a statement that more of its games are scheduled to be added to the casino in the future. The casino allows its users to play one game initially, with the chance to take part in bonus rounds, win credits and unlock the remaining games upon completion.

The beta launch represents the second social casino product WMS has added to Facebook after Lucky Cruise casino was released in February, and follows Tuesday’s announcement of the formation of Williams Interactive, WMS’ wholly owned egaming subsidiary based in Chicago.

Newly appointed Williams Interactive CEO and president, Orrin J. Edidin, said of the launch: “Online social casinos are among the most popular games on Facebook and we are extremely pleased to follow the success of our initial Facebook social casino, Lucky Cruise, with the launch of a unique, new social casino that exclusively features content from player-popular, classic WMS slot games.”

This month saw the Nevada licence applicant sign a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, aimed at allowing WMS to offer 888’s online poker product to US casinos.

It also strengthened its egaming potential last month by acquiring Phantom EFX, a leader in social and mobile game development which was responsible for the development of Jackpot Party social casino’s slot games for the Facebook platform. The deal followed WMS’ acquisition of online gaming content developer Jadestone Group in May.

Aaron Schurman, CEO of Phantom EFX, said: “Our team was totally enthused as we transformed the authenticity of WMS’ great casino slot mechanics and content into a similarly energetic, fun-filled online social gaming experience.”

WMS forms new egaming division

Posted on July 17, 2012 by t.washington

Chicago-based Williams Interactive will be headed up by WMS president Orrin J. Edidin

WMS has announced the formation of Williams Interactive, a wholly owned subsidiary that will focus on expanding and developing its egaming services.

The new entity will be headed up by Orrin J. Edidin, president of WMS Industries, who has been promoted to the position of president and chief executive officer of Williams Interactive.

Williams Interactive will concentrate on its online wagering, social, casual and mobile gaming offerings in order to “capitalise on the emerging industry’s significant potential growth opportunities by supporting casinos’ participation in these new distribution channels”, WMS said in a statement.

Brian R. Gamache, chairman and CEO of WMS Industries, added: “Establishing Williams Interactive is an important step forward in concentrating our efforts and increasing our collective ability to leverage our operational and development initiatives to propel growth and returns to the next level.”

In the last few years WMS has built a suite of egaming services aimed at supporting the online efforts of its land-based customers. Its operations include B2C online casino JackpotParty.com and a B2B online casino site in Belgium in collaboration with Groupe Partouche.

More recently WMS strengthened its egaming credentials by acquiring online gaming content developer Jadestone Group and Phantom EFX, a leader in social and mobile game development with a suite of more than 35 casino and slot products developed for desktop, Facebook, and mobile.

Earlier this month the company also announced a strategic alliance with Dragonfish, the B2B arm of 888 Holdings, to pursue both social and real-money online poker in the US, when legally permitted.

WMS is one of more than 30 companies to have applied for an interactive poker licence in the state of Nevada, although its application has yet to be given a place on the state’s Gaming Control Board agenda.

Newly appointed Williams Interactive president and CEO Orrin J. Edidin added: “Creating a single organisation to unify the company’s efforts in online wagering and interactive gaming distribution channels, while drawing upon our extensive existing library of great gaming content, will better enable WMS to participate in the many high-margin opportunities this content convergence offers.

WMS acquires social casino games developer Phantom EFX

Posted on June 18, 2012 by t.washington

Acquisition for unknown amount follows Jadestone acquisition last month

Gaming machines manufacturer WMS Gaming has acquired Phantom EFX, a leading publisher and developer of interactive casino and slot games, for an undisclosed sum.

Phantom EFX, otherwise known as Genesis Communications, was founded in 1998 and has a suite of over 35 casino and slot products developed for Facebook, mobile, iOS and PC.

Prior to today’s announcement the two companies had worked together for more than a year to create and distribute slot games for digital, mobile and retail platforms.

The deal is the second in as many months for WMS as it expands its egaming capabilities, with last month seeing the company agree the acquisition of Swedish developer Jadestone Group.

Orrin J. Edidin, president of WMS, said the Phantom EFX deal, along with its recent agreement with Groupe Partouche for a WMS-hosted Belgium online casino and last year’s move into online under the UK-facing Jackpot Party brand, positions WMS as a “premier partner for casinos and gaming companies seeking a proven and integrated strategic approach” by creating a full complement of interactive solutions.

“We are focused on supporting our customers as they engage their player base beyond the four walls of the casino. Customers can count on WMS to evolve with them and help them move forward with confidence to stay connected to their players, wherever and however players find it most convenient to seek out gaming entertainment today and in the future,” Edidin said, adding that “Together we will focus on creating the industry’s most creative and comprehensive suite of interactive products and capabilities.”

WMS in Jadestone acquisition

Posted on May 22, 2012 by t.washington

Deal, for unspecified amount, comes five months after Swedish group’s management buyout

Land-based gaming machines manufacturer WMS Gaming has continued its move into online with the acquisition of Swedish developer Jadestone Group for an undisclosed sum.

The deal, aimed at enhancing WMS’ existing portfolio, is described in a release from the company as a “tuck-in acquisition” and comes just five months after Jadestone completed a management buyout from former parent company PAF.

Jadestone signed a two-and-a-half-year casino deal with Betsson in March this year, and also has B2B agreements in place with the likes of Betfair, bwin.party and Unibet.

The deal allows WMS to build on last year’s move into online under the UK-facing Jackpot Party brand, while last month saw the company agree to host Groupe Partouche’s Belgian-facing casino.

It has also applied for a licence in the Nevada egaming market, while February saw the US-based company launch its Lucky Cruise social casino on Facebook.

WMS president Orrin J Edidin said of the acquisition: “With a proven management team and a decade of experience in development and platform integration for online gaming industry leaders, Jadestone brings a complementary mix of expertise and technology solutions to WMS.”

Robert Henrysson, Jadestone’s chief executive, showed his enthusiasm for the deal, saying: “Combining our entrepreneurial creativity with WMS’ culture of innovation sets an exciting next stage in our business development.”