Online division brings in US$17m to drive 21.9% year-on-year gaming revenue growth
WMS Industries’ growing egaming division helped the company record a 21.9% year-on-year increase in gaming operations revenue for the quarter ended 31 March 2013.
Gaming revenues for WMS, acquired by Scientific Games in January, increased from US$65.4m in Q3 last year to $79.7m in this year’s third quarter. The online division Williams Interactive, launched in July last year, contributed $17.1m.
WMS’ saw overall revenues grow 1.1% to $177.9m in the period, a rise from $176m in the corresponding quarter last year. However, adjusted EBITDA for the third quarter decreased 25% year-on-year, dropping to $49.3m from $65.3m in Q3 last year, while net income was also down 64% from $22.1m in the same period in 2012 to $7.5m. Both declines were blamed on to “incremental costs related to the pending acquisition” by SciGames.
WMS chief executive Brian Gamache said he was encouraged by the “continued strong revenue growth for our interactive products and services”. “Strong player and customer interest in recently launched gaming machines and the growing availability and rising popularity of our interactive products and services are establishing a platform for long-term success,” he said.
Gamache added that WMS would look to increase investment in new product development and marketing efforts aimed at “expanding the distribution and availability of [its] interactive products, services and game content”.
Last week the Delaware Lottery selected a joint bid by Scientific Games, 888 and Williams Interactive to provide it with online gambling services, with an online gaming site in the state set to go live by the end of the year. The third quarter also saw Williams Interactive strike content distribution deals with SkyBet’s Sky Vegas casino brand and the Rank Group, as well as Scandinavian-facing operator Bonnier Gaming.