LAS VEGAS (AP) — Casino game maker Bally Technologies Inc. said Thursday that its net income grew 37 percent in the fiscal second quarter, and it raised its expectations for the rest of the year.
Bally reported continued strong sales of gaming units with a wide-area progressive jackpot — meaning many machines are linked together and the prize gets bigger until someone wins. Sales of gaming equipment also increased as U.S. casinos ordered more replacement units and the company shipped a large number of video lottery terminals to Canada.
The company said its net income totaled $33.1 million, or 80 cents per share, for the quarter ended Dec. 31. A year ago it reported net income of $24.3 million, or 54 cents per share. Revenue rose 13 percent to $238.3 million from $210.5 million.
Analysts were expecting net income of 76 cents per share and $235.1 million in revenue, according to FactSet.
Bally said gaming equipment revenue rose 18 percent to $82.6 million and gaming operations revenue rose 15 percent to $99 million. System revenue increased to $56.7 million from $54 million.
The company is now projecting net income of $3.20 to $3.40 per share in fiscal 2013, up from its previous estimate of $3.05 to $3.35 per share. Analysts expect $3.25 per share on average.
Shares of Bally Technologies climbed $2.64, or 5.8 percent, to close at $48.16 before the report, and added another 84 cents in aftermarket trading.