Scientific Games to use Bally for further growth after 2014 success

Scientific Games to use Bally for further growth after 2014 success

Thursday, March 12, 2015

Scientific Games says it will build on its acquisition of Bally Technologies in 2015 after posting heavy losses related to the $5.1bn ($4.8bn) purchase in 2014.

The deal was concluded in November 2014, with the gaming solutions provider posting a heavy operating loss of $172.7m, compared to just $18.3m in the previous year.

However, Scientific reported revenue of just under $1.8bn for the year, up from $1.1bn in the previous 12-month period.

Earnings before interest, tax, depreciation and amortisation was also up from $382.5 million in 2013 to $556.4 million last year, while total assets jumped from $4.2 billion in the previous year to just under $10 billion by the end of 2014.

Net loss also increased from a negative of $18.3 million in 2013 to a loss of $234.3 million in the most recent 12-month period.

Gavin Isaacs, president and chief executive officer of Scientific Games, said: “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 realise 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.”

In the final quarter of 2014, revenue in Scientific Games’ gaming segment, which includes slot machine sales from Bally and WMS products and table game systems from SHFL, almost doubled, reaching $301.7m. Lottery revenue increased less than one per cent to $221.1m while revenue from the interactive segment increased 43.3 per cent to $43m.
 
“Once we have a few quarters of the companies operating together, we’ll have better picture of our ability to lead the sector,” Isaacs added.

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