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Scientific Games reveals widespread growth in 2017

| By iGB Editorial Team
Scientific Games has reported year-on-year financial growth across all business segments for the 12 months to December 31, 2017

Scientific Games has reported year-on-year financial growth across all business segments for the 12 months to December 31, 2017.

Revenue amounted to $3.08bn (€2.52bn), which represents an increase of 7%, or $200.2m, on the previous year.

Operating income climbed from $130.6m in 2016 to $393.1m, while net loss also improved from $353.7m to $242.3m in the past 12 months.

However, Scientific Games said that these improvements were partially offset by a $38.1m loss on debt financing transactions and a $139.5m decline in income tax provision “primarily related to a valuation allowance recorded against certain domestic deferred tax assets”.

Elsewhere, adjusted earnings before interest, tax, depreciation and amortisation (AEBITDA) increased 11% year-on-year from $1.10bn to $1.22bn, while net cash from operating activities increased from $419m to $507.1m.

Kevin Sheehan, chief executive and president of Scientific Games, said: “Our results in the fourth quarter 2017 reflect the improvements achieved in revenue, operating income and AEBITDA growth by each of our business segments.

“For 2018, we believe the company is well positioned to continue to grow and build on the success attained in the past year.”

Michael Quartieri, chief financial officer at Scientific Games, added: “Our improved performance and strong future prospects enabled us to successfully refinance a portion of our capital structure in 2017 and 2018 that significantly lowers our cost of capital and increases future cash flow.

“We believe there is potential to achieve further improvements in 2018 and beyond, and we remain committed to our path of deleveraging and growing our business.”

Meanwhile, Scientific Games has acquired a majority stake in video bingo content studio E-SYS Techologia EM Informática S.A. (EsysnetG).

The terms of the deal were not disclosed, but Scientific Games said that the acquisition will provide it with access to EsysnetG’s existing and future video bingo content for the development of online, mobile, and land-based games.

Scientific Games added that this content from the Brazilian studio will be placed in markets around the world.

Derik Mooberry, group chief executive gaming at Scientific Games, said: “We are excited to welcome EsysnetG into the Scientific Games family.

“This acquisition will enable us to provide our customers with expanded, engaging video bingo content and is yet another example of our continued investment in solutions that help the company offer the broadest portfolio of innovative products in the industry.”

Related article: Scientific Games completes financing transactions

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