Shuffle Master Profits Continue to Grow

As in every September, the reports from Q3 (the third quarter of a fiscal year) start to reach the American gambling news.

One of the latest in the row to release a financial report is Shuffle Master. The company’s main focus is providing both back-end and front-end technology for sites that let gamblers play games in American poker rooms and casinos around the World. The company makes devices, for example stand-alone poker machines that one can see in land casinos or in certain bars.

Without going too much into technical details, back-end technology basically runs the computers that control the games, and runs the player and bonus accounts if they are involved. Front-end is what the player uses in the interface, what he sees on the screen, what buttons he pushes, what sounds he hears.

Shuffle Master clearly takes advantage from the Nevada gambling regulation that is one of the most progressive among the American gambling laws. The company is a licensed Nevada online poker technology provider.

The company’s profits rose a solid 14% to $10.4m in the third fiscal quarter of the year. Second quarter of 2012 was reported to be also good for the company, it seems they managed to keep the speed of growth.

Shuffle Master’s overall revenues rose 8.7% to $63.4 million. From the numbers we can see that they did a great job increasing profitability. Total recurring revenue grew 12% to $30m. It was the 15th consecutive quarter of recurring revenue growth, a company record in itself.

Breaking down the numbers: Shuffle Master’s total utility revenue is up 8% to $24.4m, mainly because of shuffler leases in the US as well new shuffler sales to casino customer in the Macau. Total revenue from proprietary table games was up 18% to $13m.

The company lost on the electronic table systems market, with revenues falling 11% to $6.1m. The sector saw a 29% decrease in sales, complemented by lower unit prices. Electronic gaming machines revenue grew 11% to $20m.