SG ‘confident’ of achieving market leading status despite Q4 reversals

US gaming technology firm Scientific Games has shown an improvement in its full-year figures for 2019, despite the year’s final quarter seeing a significant swing from a net profit of $207m to a loss of $37m.

The prior year included a $183m reversal of a reserve related to resolving antitrust litigation alongside Shuffle Tech and other plaintiffs. On a full-year basis net loss narrowed to $118m from $352m.

The company saw a 2.6 per cent drop in quarterly revenue to $863m (2018: $886m) impacted by lower machine unit sales and a drop in gaming revenue primarily due to fewer systems launches in Canada. Full-year revenue rose a little over one percentage point to $3.4bn.

Consolidated adjusted EBITDA fell 4.3 per cent from $343m to $328m during Q4 with lower lottery and gaming AEBITDA offset by a digital increase of 75 per cent to $21m. A slight full-year rise to $1.33bn was driven by growth in lottery, SciPlay and digital segments, which was largely offset by a gaming decline.

Michael Quartieri, chief financial officer of Scientific Games, commented: “We reduced our net debt by over $460m in 2019, while successfully completing two refinancing transactions that will significantly reduce our cash interest costs going forward and extended our maturities. Our overarching commitment remains delivering through organic growth, new market opportunities, and driving further enhancements to our free cash flow.”

Performance across Scientific Games’ core business segments sees revenue declines of five and one per cent across gaming and SciPlay to $445m (2018: $470m) and £113m, respectively. Lottery and digital both recorded slight revenue increases of one per cent to $233m and $72m.

Barry Cottle, CEO and President of Scientific Games, added “This past year, we made great strides in developing the best games, attracting industry leading talent, and improving our capital structure. 

“I’m confident we have the right team in place to reach our goal to be the market leader across land-based gaming, lottery, sports and digital gaming driven by leading content and the platforms that enable play anywhere and anytime. Our recent contract and deal wins across our businesses, and the globe, highlight that we are on the right path.”