Scientific Games with stable numbers for 2016

Scientific Games with stable numbers for 2016

Posted on June 21, 2024 by in Gambling
Scientific Games

At the beginning of March 2017 Scientific Games presented the annual figures for the past financial year 2016 and the fourth quarter 2016. And the company can look back on a good quarter as well as on a good year. With the fourth quarter of 2016, a quarter of growth was recorded for the fifth time in succession. With debt refinancing operations in the recent past, debt and interest rates were reduced. For example, the Scientific Games team has focused on making sustainable decisions that will also play an important role in growth this year.

Fourth quarter of 2016 was a good quarter

Revenue in the fourth quarter of 2016 rose by two percent compared with the fourth quarter of 2015. This was an increase of exactly 15.2 million US dollars to 752.2 million US dollars. Naturally, this growth in sales was not easily achieved. The division for social B2C gaming rose by 52 percent compared to the same period of the previous year and the table products also rose by 37 percent. The operating loss in the fourth quarter of 2016 totaled 12.3 million US dollars. This includes non-cash goodwill amortization of $ 69.0 million, charges for restructuring and other items of $ 36.3 million. Compared to the same period of the previous year, the figure was still $ 54.4 million. Goodwill amortization and other impairment losses of $ 129.4 million were made in the fourth quarter of 2015. This is, of course, also a key factor for net loss, which was $ 110.8 million in the fourth quarter of 2016, and $ 127.5 million in the prior-year period.

EBITDA in the fourth quarter of 2016 was $ 293.5 million. In the same period of 2015, there were still 292.9 million US dollars. This has increased slightly, which is due to the fact that at Scientific Games an improvement initiative was implemented in the business sector, which has seized in many points. Even lower revenues in the gambling and lottery sectors were offset. Among other things, three Social Gaming Apps launched in 2016 were very successful.

The net cash decreased significantly from 158.7 million US dollars in the fourth quarter of 2015 to 76.2 million US dollars in the last quarter of 2016. However, this reduction is due to many things, including an unfavorable time for the working Capital and restructuring measures and other items. The available cash flow decreased to 2.1 million US dollars. In the same period of 2015 it was still 59.2 million US dollars. There were also higher costs for the restructuring and unfavorable influences on the working capital. In the fourth quarter of 2016, debt of $ 17.2 million was also reduced.

The entire year 2016 was not bad at Scientific Games

Not only had the fourth quarter of 2016 run quite well at Scientific Games. Also the whole year was not so bad. Sales in 2016 rose by five percent to 2,883.4 million US dollars. This was an increase of 124.6 million US dollars compared to fiscal 2015. The operating result was 130.6 million US dollars. This includes goodwill amortization of $ 69 million, restructuring and other expenses of $ 57 million.

The loss in the previous year was 1,024.6 million US dollars. However, these figures also include goodwill amortization of $ 1,002.6 million, as well as $ 205.2 million for long-term assets. In addition, $ 62.8 million was spent on restructuring measures and other expenses were also included in the loss. These items and the non-cash gain of $ 25.2 million for debt reduction in 2016 have reduced the net loss. Net loss in 2016 was $ 353.7 million, while in 2015 it was still $ 1,394.3 million.

The AEBITDA was $ 1,103.6 million. This represents an increase of three percent compared to the AEBITDA for the year 2015. The net cash in the current business was 419 million US dollar. In the previous year, the figure was still 414.2 million US dollars, which is an increase in this area as well. Cash flow increased from $ 86.1 million in 2015 to $ 120 million in 2016. Scientific Games 2016’s debt was also reduced by $ 169.4 million.

At Scientific Games the figures have been positive

The CEO of Scientific Games, Kevin Sheehan, is pleased that the company’s growth continued in 2016. After all, this is not a matter of course. According to Sheehan, Scientific Games also means that one’s own position in the market is constantly being strengthened and that one is thus in progress. Especially the fourth quarter of 2016 was very good and also the fifth quarter in a row that convinced Scientific Games with positive figures. Growth continued in the quarter as well. This is certainly a point that Sheehan very pleased. Innovations and restructuring in the company as well as other strategies pay off at Scientific Games. The company is therefore well positioned in the US market. But the rest of the world is also represented with many products. Otherwise, the aforementioned figures would not have been possible. It is therefore quite possible that the financial year 2017 will be very successful in the end if the strategies are implemented effectively and Scientific Games is even more successful in the market.

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