SHFL posts record profits for 2012
Gaming supplier aims to break even in egaming business following planned $10m investment in 2013.
SHFL entertainment will invest US$10m in its egaming division next year, the gaming supplier has announced in its record breaking full-year results.
In its first results since changing its name from Shuffle Master in October, the company posted record revenues of $259m, a 14% increase compared to last year, while adjusted operational profits grew by 17% year-on-year to a record $87m. The fourth quarter of 2013 marked SHFL’s 16th consecutive period of growth.
Income from online operations remained small in 2012 at just $2.7m, however CEO Gavin Isaacs (pictured) said in a conference call yesterday evening that SHFL will invest heavily in the area with the aim of breaking even in 2013.
“In fiscal 2013, we anticipate investing approximately $10m to igaming initiatives, more than half of which will fall on research and development and is mostly variable and in support of healthy revenue streams,” he said. “This investment will go towards the completion of our igaming infrastructure build-out which includes data set-up costs, additional licensing and compliance to further our reach, ongoing certification cost, and hiring additional personnel.
“It also includes customer integration expenses that are necessary in order to embed our technology into operator sites, which is critical for both real-money gambling and free-to-play.”
Investments will include the deal announced by SHFL yesterday in which it has entered into an exclusive partnership with Amaya Gaming to distribute the Canadian gaming supplier’s poker and egaming platforms for 10 years.
Last month it also appointed former Mansion head of product development Nick Gabriel as the new head of its online gaming division, based out of the gaming supplier’s new Gibraltar office, as well as obtaining crucial licences in Nevada, Gibraltar and Alderney in the past six months.
Yesterday’s announcement will see SHFL able to offer Amaya’s gaming platform as well as the Ongame poker platform which the Canadian supplier acquired for up to 25m in October this year.
Under the terms of the agreement, SHFL will pay up to US$10m for the exclusive rights and divide all revenue equally with Amaya. However the fee will only be payable should relevant regulation passes in the US.
It represents a crucial turnaround for SHFL, previously Shuffle Master, which agreed to buy the then bwin.party-owned Ongame in March before pulling out of the deal in June citing lower-than-expected European revenues and lack of regulatory certainty in the US.
Elsewhere in its full-year results, SHFL saw revenue from electronic table game sales increase by 37% to $10m and slot machines sales up 6% to $24.9m.