Although Las Vegas, and the gambling industry in general have seen a huge boom over the course of the last year, the same is not true for all companies within the industry. In fact, a few select companies have also reported a fall in their overall earnings, which comes as a bit of a surprise given the fact that so many companies have done so well in recent years. Recently, a Chicago slot machine maker, known as WMS reported that they had a dip in revenue and stockholder earnings. The good news, is that certain divisions of the company have started to make money, which is going to be a huge concern moving forward.
The company is responsible for launching a number of games including the Jackpot Party Social Casino, one of the most popular gambling games on Facebook. The revenue that the game is able to bring in exceeds more than $100,000 a day, and players continue to pay in order to increase the overall playing time that they have. The company reported this revenue to investors, and is looking to restructure certain areas of their company in order to capitalize on the smart investments that they have made in recent years. The company also said it will be releasing a mobile version of the game as an application for both android and iPhone’s, which can really help to boost the company’s revenue as well.
“The early success of Jackpot Party Social Casino contributed to $12 million in year-over-year revenue growth from interactive products and services,” Brian R. Gamache, chairman and chief executive officer, said.
The company reported a number of different things including revenues that were a total of $175.5 million for the quarter ending in December. During the same quarter of 2011, the company reported earnings of $162.2 million. This is a significant different the company, who was hoping to really improve upon their offerings. Stockholders are earnings ended the quarter at a total of eight cents per share, which was down a total of $.29 per share from the previous year. This is a huge concern for the company who is looking to grow, with their successful online gambling games moving forward. The sales of games and interactive products reached a total of $72.7 million, which was an increase of $8 million over the previous year. The company, which does have a office that is located in the Las Vegas area, had income and earnings per share reflected by the acquisitions that the company made in the previous year.
The company canceled and earnings call, because of a recent acquisition. They recently required the company Scientific Gaming, which is a creator of lottery tickets and software, which purchased the company for total of $1.42 billion. They agreed to pay $26 per share in cash for the company, which shows that there is still an interest in what WMS has to provide, and will be interesting to see how they make changes within the company in order to grow them moving forward.