Scientific Games Reveal a Significant Net Loss

Scientific games Corporation declared a positive growth in their fourth quarter of 2015 despite overall yearly net loss of $1.4 billion following its $5.1 billion acquisition of rival developer Bally Technologies Incorporated.

Costly Acquisition

Scientific Games Corporation, which operates in all aspects of the industry –from lotteries to casino management and both non-traditional table games alongside slot machines have announced their revenues for the fourth quarter and full year ending December, 31, 2015.

The slot machine manufacturer and service company revealed total revenues of $2.8 billion for the year but conversely reported an annual loss of almost $1.4 billion; net loss included a $1 billion payment of “unusual pre-tax charges”, $205 million in non-cash asset impairment charges, $63 million of restructuring, integration and legal contingencies and settlement costs. However they were pleased to announce that the company had taken in $1.1 billion in operating profits in 2015.

Overall Growth

Scientific Games, the slot machines titan, reported net revenues of $737 million in the fourth quarter of the year; a 10% quarter-over-quarter increase and also a 4.2% year-over-year rise; net profits were also announced to be $293 million for the final quarter. The company believes this avenue of funds can be attributed to the sale of 8,990 gaming units in the quarter alone, a 46% increase compared to the previous period.

Share prices for Scientific Games rose 18 cents to $6.31, a 2.94% increase; while an increase of 26% was seen in after-hours trading (AHT).

Scientific Games acquired rival manufacturer Bally Technologies for a large sum of $5.1 billion in November 2014 and are looking forward to the figures from the first comparable quarter since the merger later this year.

The Outlook

Gavin Isaacs, President and CEO of Scientific Games Incorporated stated that 2015 has been a “transformational year” for the company. Scientific Games now is one single company with three strong businesses working towards their unified mission; they claim to offer the broadest of product portfolios in the industry. He added in regards to the acquisition that the company has completed the “heavy lifting of integration and built a strong foundation for the future”.

Scientific Games mentioned that they have signed several multi-year global contracts recently – to run lotteries at home, in the state of Arkansas; expanding to Ontario, Canada and Denmark and Germany in Europe.

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