Scientific Games 2018 accounts disrupted by Shuffle Tech settlement

Nasdaq-listed industry technology group Scientific Games Corporation (SGC) has detailed strong progress on its enlarged business capacity and new digital profile publishing its full-year 2018 results.

Closing Q4 2018 trading, SGC posts an 8% increase in corporate revenues to $885 million (Q4 2017: $823m), detailing robust growth across its digital, lottery and social gaming assets.

The Nasdaq enterprise records Q4 metric growth, despite its traditional gaming division being disrupted by a $23 million revenue decrease to $470 million (FY 2017: $493m), contributing to an adjusted EBITDA downturn to $233 million (Q4 2117: $238 million).

In its review of Q4 2018 activities, SGC governance details that a diversified commercial pipeline has helped the company navigate adverse jackpot results and a period reduction in gaming-unit VLT installations.

Barry Cottle, CEO and President of Scientific Games, said: “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 organization 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.”

For 2018 trading, an enlarged SGC records a 9% increase in corporate revenues to $3.3 billion (FY 2017: $3.1 billion).

Nevertheless, SGC full-year top-line metrics have been impacted by the $150 million settlement attributed to resolving its Shuffle Tech dispute, confirmed during December 2018 trading.

The Shuffle Tech settlement payment sees SGC governance expand 2018 operating losses to $352 million. Furthermore, SGC announces that its operating capital has been reduced to $346 million (2017: $507 million).

Michael Quartieri, Chief Financial Officer of Scientific Games, added: “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 maximize free cash flow and deliver our balance sheet.”