Global gaming supplier SHFL Entertainment has posted a steep fall in net income despite a rise in profit in the three months until the end of July.
In announcing its third-quarter results, SHFL cited one-off expenses of $3.6 million (€2.7 million) related to the company’s merger agreement with online casino games and solutions firm Bally Technologies as the primary reason for net income dropping year-on-year by $4 million to $6.4 million.
SHFL said that total revenue grew by 16% to $73.5 million, primarily due to a 79% year-over-year increase in Electronic Table Systems revenue.
Electronic Gaming Machines revenue increased by 16% to $23.2 million, driven by growth in Asia, but gross margin for the division remained relatively flat at 60%.
The company’s total expenses for the quarter increased to $65 million from $50 million, while adjusted earnings for the quarter were $9.5 million, or $0.16 per share.
Research and Development expenses increased by $2.4 million year-over-year due to an increase in headcount and product approval expenses related to several initiatives across all product segments.
