Multimedia Games boosted by sales in second quarter
Gaming content provider Multimedia Games has cited an increase in unit sales as the driving force behind a jump in revenue during the three months to March 31, 2014.
The company posted revenue of $58.2 million (€42 million) in the second quarter of 2014, an increase on the $46.6 million it recorded in the corresponding period last year.
Operating income grew from $13.9 million in 2012 to $17.4 million this year while net income also increased from $9.3 million last year to $11 million in the most recent quarter.
Multimedia Games was also able to record a jump in earnings before interest, tax, depreciation and amortisation, which grew from $24.1 million in Q2 of 2013 to $30.7 million this year.
The company put much of its second quarter growth down to a significant rise in unit sales, with this total having increased by 88.6% from 580 last year to 1,094 in the most recent quarter.
Patrick Ramsey, chief executive officer of Multimedia Games, said: “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.
“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.
“These are exciting times for Multimedia Games as we continue to successfully penetrate new markets while increasing the number of our innovative and player-favourite games on slot floors in the Company's more established markets.”
Meanwhile, Multimedia Games has also entered into a definitive agreement to acquire PokerTek, a company that develops and distributes electronic table games solutions.
The deal, which is worth approximately $13 million, will see a Multimedia Games subsidiary merge with and into PokerTek, with PokerTek surviving as a wholly owned subsidiary of Multimedia Games.
Ramsey added: “As eTables become a growing component of the gaming mix for domestic and international casinos, this proposed transaction represents an excellent opportunity for Multimedia Games to expand our product portfolio.”