The $5.1 billion acquisition of slot manufacturer Bally Technologies has had a direct impact on the Q4 performance of Scientific Games. As the operator posted increased group revenues of $565 million (Q4 2014 – $401 million), but a period net loss of $47.1 million.
Scientific Games high level acquisition of Bally Technologies, impacted full year 2014 performance as the company reported net loss of $235 million (FY 2013 -$30.2 million). Its acquisition of Bally had seen a positive impact on revenues as the company recorded FY 2014 revenues of $1.7 billion (FY 2013 – $1.1 billion)
During Q4 Scientific games had recorded further operational expenses relating to the closing and integration of Bally Technologies services, which impacted further on the company net revenue performance
Its acquisition has seen corporate debt hike up to $8.5 billion in 2014, as Bally Technologies acquisition is combined to the company’s 2013 acquisition of gambling technology provider WMS Industries. Total group assets are set to be valued at $10 billion following the completion of Bally Technologies.
President and Chief Executive Officer Gavin Isaacs stated that the acquisition made by Scientific Games would turn the company into the market leader
“With the combination of Scientific Games and Bally, we are focused on becoming the partner of choice for gaming, lottery and interactive customers,”
To this end, we plan to launch an exciting array of new products across our Bally, WMS, Shuffle Master, Williams, Barcrest and lottery brands throughout the world in 2015. At the same time, as we continue to invest in developing innovative new products and services to help our customers grow their businesses, we also are just as committed to quickly implement our integration plans to realize targeted cost savings and generate growing free cash flow.”
“We believe that our planned new product and service introductions will demonstrate that no other company can match the breadth and depth of our differentiated solutions to address the needs of gaming, lottery and interactive customers. The diversity of our products and services and the scale of our operations uniquely position Scientific Games to effectively serve our customers and achieve long-term growth.”
Performance Overview Scientific Games 2014