Scientific Games Corporation is hoping a strong finish to 2018 is to best place the company as it strives for growth and deleveraging in 2019, following a number of setbacks which has seen the company post a full year net loss of $352.4m.
Contrasted to a figure of $242.3m a year earlier, it follows an agreement reached by the Las Vegas headquartered firm who had originally been ordered to pay $335m to Shuffle Tech International and other plaintiffs in August last year.
Reaching a settlement that will see Scientific Games pay $151.5m, representing 45 per cent of the original penalty, it marked a much reduced settlement from the original $315m, plus attorney’s fees and costs.
Further impacts came in the form of $253.4m in restructuring, and $27.5m for contingent consideration associated with the higher-than-expected results from the 2017 acquisition of Spicerack.
Net income for the year’s fourth quarter came in at $206.8m, contrasted to a $43.1m loss the prior year, aided by the 55 per cent reversal of the Shuffle Tech legal matter.
Q4 revenue rose eight per cent to $885.7m, up from $823.0m the year earlier, reflecting $51.7 million in revenue from NYX, along with growth across lottery and social businesses, helping FY figures achieve a nine per cent increase to $3.3bn.
Adjusted EBITDA for the quarter is reported at a six per cent rise to $343.5m (2017: $324.5m), with a nine per cent boost for the full year to $1.3bn (2017: $1.2bn).
Barry Cottle, CEO and president of Scientific Games, explained: “This is a very exciting time for Scientific Games. We’re focused on developing the best games and the most innovative platforms, to deliver outstanding gaming experiences wherever and whenever players choose to play.
“We are building momentum and continuing to grow our business while at the same time operating more efficiently. The entire organisation is enthused about 2019 and focused on helping our customers win, which will drive our free cash flow and create meaningful value for our shareholders.”
Michael Quartieri, chief financial officer of Scientific Games, commented: “We continue to grow our top line driven by the strength of our products. We believe there are opportunities for further growth in 2019, both on a top line and bottom line basis as we are firmly committed to maximise free cash flow and deliver our balance sheet.”
