Scientific Games reveals revenue rise but larger loss

By Gareth Bracken
Provider Scientific Games has reported increased revenue and loss for both Q4 2015 and the full year.

Revenue for the three months ended 31 December rose 30% year-on-year to $737m, driven by 8,990 gaming units shipped globally, including 5,366 units to North America customers, and an increase in Interactive revenue to $60m.

Gaming segment revenue increased 56% to $469m, while a gaming loss of $142.9m for the previous year was turned into $53.6m operating income for 2015.

Lottery segment revenue fell 6.1% to $207.7m, while $42.9m operating income the previous year became a $63.4m loss.

Interactive segment revenue rose 40% to $60.3m, while operating income was $9.6m, up from $0.1m the previous year.

Scientific Games' Q4 net loss worsened from $47.1m to $127.5m, although operating loss did however reduce from $156.4m to $54.4m.

According to the firm, the net loss figure includes "the impact from $137m of unusual pre-tax charges ($86m after-tax) composed of a $68m non-cash goodwill impairment charge, $62m of non-cash long-term asset and other asset impairment charges, and $7m of restructuring, integration and legal contingencies and settlements costs, partially offset by the favourable effect of integration cost synergies".

Fourth quarter AEBITDA improved from $173.3m in 2014 to $292.9m in 2015, while fourth quarter AEBITDA rose to 39.7%, driven by higher revenue and lower costs due to "integration actions implemented earlier in the year".

Revenue for the corporation and its subsidiaries increased 54% to $2.76bn for the 12 months ended 31 December, although net loss rose from $234.3m to $1.39bn.

Operating loss worsened from $172.7m to $1.02bn.

Total debt as of 31 December 2015 was $8.21bn.

Scientific Games chief executive officer Gavin Isaacs said: "2015 was a transformational year for Scientific Games, culminating in a strong finish for our fourth quarter operating results.

"We completed the heavy lifting of integration, benefited from $231m of implemented annualised cost synergies, and built a strong foundation for our future."
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