Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Larry Klatzkin - Jefferies
Larry Klatzkin - Jefferies
Could you go over the power of the China price point increases how the margin moves as you increase ticket prices?
Mike Chambrello
As an example if we were to apply June or July’s price points to volume in September and October then our overall retail sales would improve by north of 20%. That’s again assuming that you’re only dealing with 10 RMB tickets which certainly in 2009 we expect to have a higher price point.
Larry Klatzkin - Jefferies
How high could you go on the RMB tickets?
Mike Chambrello
It’s too early to tell and our customers probably would?
Larry Klatzkin - Jefferies
Outlook for Italy next year is there going to be a re-bid in 2010. You guys are linked with LottoMatic is that going to remain in tact?
Mike Chambrello
Sales in Italy obviously remain very strong and we anticipate that they’ll continue to grow into next year. It’s too early in the process to really know and understand what the monopolies plans are going to be. Vis-à-vis a current contract extension, new procurement process etc. I can tell you that our relationship with LottoMatic is very, very strong and we intend and they intend to continue with this relationship through either a contract extension period a new license period and we fully expect and have agreed the consortium remain in tact.
Larry Klatzkin - Jefferies
How many Games Media units could you have in place by year end with everything going on?
Lorne Weil
I would have given you possibly a rather different answer even yesterday then I would today. Sitting here now I would say at the very least a couple thousand and quite possibly considerably more and certainly if not considerably more than a couple thousand by the end of this year then certainly considerably more by early in the first quarter.
We’ve talked about before we have this portfolio of contracts where the contracts have trigger points each time we hit a different set of performance objectives. We can pretty much project the thing out based upon how we’re hitting those performance objectives. Again the mindset of the customers because they’re dealing in a very difficult environment.
The picture is a very positive one but it’s a question of the pace at which it gets rolled out. You can see how this thing is happening now that it begins to feed on itself and it begins to gather up its own momentum. This thing from yesterday is a very, very important. I know your next question is how much do I think the contribution might be next year. You know what my answer to that would be so don’t bother asking the question.
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