WMS HAILS INTERACTIVE RESULTS
Friday November 2, 2012 : WMS HAILS INTERACTIVE RESULTS
Expects momentum to continue in online channel
WMS Industries Inc. reported on its first quarter results for its 2013 fiscal period delivering a fiscal first quarter record in its product sales gross margin.
The firm said success in the growth of its interactive products and services were attributed to the successful July 2012 launch of its Jackpot Party® Social Casino on Facebook®, coupled with organic growth in its UK-based B2C online website and the addition of Phantom EFX retail sales and Jadestone game server integration revenues.
Key performance indicators for the three month period ending September 30, 2012 include:
– Revenues of $159.1 million (Q1/2011: $155.6 Million)
– Net income of $9.3 million (Q1/2011: $3.8 Million). Net income over the period reflects higher year-over-year research and development expenses to support the growth of its interactive products and services with an additional $ 3.3 Million spent for this purpose over the quarter.
– Gross profit increase of $4.1 million Y-O-Y.
– Adjusted EBITDA increased 24 percent to $52.9 million as EBITDA margin improved 570 basis points.
– Cash flow provided by operating activities for the quarter of $21.0 million, a year-over-year increase of 60 percent or $7.9 million.
Interactive products and services performance indicators include:
– Revenue increased to $9.5 million from $0.7 million in the prior-year period
Brian R. Gamache, Chairman and Chief Executive Officer of WMS Industries said: "We are generating very exciting revenue growth from our interactive products and services as we continue to invest in attractive long-term growth opportunities.
"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. This success is reflected in the $9 million year-over-year growth in revenue from interactive products and services, and we anticipate a range of $35-to-$40 million 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.
"With improved product sales ship share, terrific titles and platforms for our gaming operations business and momentum with our interactive products and services, we fully expect to generate further progress across our worldwide business in the coming quarters."