Play'n GO new release Crabby's Gold
Connect with us
Play'n GO new release Crabby's Gold

Gambling in the USA

Scientific Games Reports Fourth Quarter Results and Full Year 2018 Results

Published

on

Photo Source: miifotos.com

 

Operating results provide strong finish to year with path set for growth and deleveraging in 2019

 

Scientific Games Corporation today reported results for the fourth quarter and year ended December 31, 2018.

Fourth Quarter 2018 Financial Highlights:

  • Fourth quarter revenue rose 8 percent to $885.7 million, up from $823.0 million in the year ago period, reflecting $51.7 million in revenue from NYX, along with growth in our Lottery and Social businesses.
  • Net income was $206.8 million compared to a net loss of $43.1 million in the prior year period, driven by improvement in operating income and due to a $183.1 million reversal of 55% of the previously established reserve related to the Shuffle Tech legal matter.
  • Consolidated Adjusted EBITDA (“Consolidated AEBITDA”), a non-GAAP financial measure defined below, increased 6 percent to $343.5 million from $324.5 million in the prior year period, primarily driven by higher revenue and continued operational efficiencies. Consolidated AEBITDA margin, a non-GAAP financial measure defined below, was 38.8 percent, compared to 39.4 percent in the prior year period reflective of a shift in revenue mix primarily driven by NYX.
  • Net cash (used in) provided by operating activities decreased to ($9.8) million from $118.1 million in the year ago period, driven primarily by making a $151.5 million payment to resolve the Shuffle Tech legal matter.
  • Social Gaming IPO Filing: On December 17, 2018, our Social gaming business confidentially submitted a draft registration statement on Form S-1 to the Securities and Exchange Commission (“SEC”) relating to a possible initial public offering of a minority interest in our Social business (the “contemplated IPO”). The Company anticipates that the proceeds from the contemplated IPO would primarily be used to repay debt. On February 14, 2019, our Social gaming business confidentially submitted Amendment No. 1 to its draft registration statement on Form S-1.

Full Year 2018 Financial Highlights:

  • Revenue increased 9 percent, or $279.6 million, year over year to $3,363.2 million.
  • Net loss was $352.4 million compared to a net loss of $242.3 million a year ago, driven by $253.4 million in restructuring and other charges primarily consisting of the $151.5 million payment to resolve the Shuffle Tech legal matter and $27.5 million for contingent consideration associated with the higher-than-expected results from the 2017 acquisition of Spicerack.
  • Consolidated AEBITDA, a non-GAAP financial measure as defined below, increased 9 percent to $1,329.7 million compared to $1,224.9 million in the prior year.
  • Net cash provided by operating activities was $346.1 million compared to $507.1 million in the prior year, reflective of the $151.5 million payment to resolve the Shuffle Tech legal matter and a $52.4 million unfavorable change in accrued interest, due to the timing of our interest payments, which were modified in connection with our refinancing transactions.

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.”

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 delever our balance sheet.”

SUMMARY CONSOLIDATED RESULTS





















Three Months Ended December 31,



($ in millions)

Advertisement
Stake - Best Online Casino & Sports Betting Platform

2018



2017



Revenue 

$

885.7





$

823.0





Net income (loss)

206.8





Advertisement
Stake - Best Online Casino & Sports Betting Platform

(43.1)





Net cash (used in) provided by operating activities 

(9.8)

(1)



118.1





Capital expenditures 

97.7





79.6















Non-GAAP Financial Measures (2)

















Consolidated AEBITDA 

Advertisement
Stake - Best Online Casino & Sports Betting Platform

$

343.5





$

324.5





Consolidated AEBITDA margin 



38.8%







39.4%





Free cash flow 

$

(229.2)

Advertisement
Stake - Best Online Casino & Sports Betting Platform

(3)



$

9.7









































Balance Sheet Measures

As of Dec 31, 2018



As of Dec 31, 2017



Cash and cash equivalents

$

168.2





$

Advertisement
Stake - Best Online Casino & Sports Betting Platform

788.8





Principal face value of debt outstanding (4)



9,218.8







8,869.4





Available liquidity 



438.7







1,009.4























(1) Includes a $151.5 million payment to resolve the Shuffle Tech legal matter.

(2) The financial measures “Consolidated AEBITDA”, “Consolidated AEBITDA margin”, and  “free cash flow” are non-GAAP financial measures defined below under “Non-GAAP Financial Measures” and reconciled to the most directly comparable GAAP measures in the accompanying supplemental tables at the end of this release.

(3) Includes a $151.5 million payment to resolve the Shuffle Tech legal matter, $104.2 million for the final LNS concession funding contribution, and an approximate $49.5 million change in accrued interest.

Advertisement
Stake - Best Online Casino & Sports Betting Platform

(4) Principal face value of outstanding 2026 Secured Euro Notes and 2026 Unsecured Euro Notes are presented at the constant foreign exchange rate at issuance of these notes.

GAMING HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2018



Three Months Ended December 31,



Increase/(Decrease)

($ in millions)

2018



2017



Amount



%

Advertisement
Stake - Best Online Casino & Sports Betting Platform

Revenue















   Gaming operations(1)

$

151.4





$

169.2





$

(17.8)



(11)

%

Advertisement
Stake - Best Online Casino & Sports Betting Platform

   Gaming machine sales

166.7





189.8





(23.1)



(12)

%

   Gaming systems

91.6





83.5





8.1

Advertisement
Stake - Best Online Casino & Sports Betting Platform


10

%

   Table products

60.1





50.0





10.1



20

%



$

Advertisement
Stake - Best Online Casino & Sports Betting Platform

469.8





$

492.5





$

(22.7)



(5)

%



















AEBITDA

$

233.2

Advertisement
Stake - Best Online Casino & Sports Betting Platform




$

237.8





$

(4.6)



(2)

%

AEBITDA margin 



49.6%







48.3%











































(1) Gaming operations includes $6.8 million in WAP jackpots as a reduction to revenue in 2018, compared to the 2017 presentation in which $5.4 million of WAP jackpots was classified as cost of services. This change in classification has no impact on AEBITDA.

Advertisement
Stake - Best Online Casino & Sports Betting Platform
  • Total gaming revenue decreased $22.7 million, including an unfavorable $6.8 million impact on Gaming operations from revenue recognition accounting effective in 2018. AEBITDA decreased 2 percent, or $4.6 million, to $233.2 million, but reflects a 130 basis point improvement in the AEBITDA margin to 49.6 percent driven by product mix shift in the comparable quarter to higher margin table products and gaming systems.
  • Gaming operations revenue declined $17.8 million in the fourth quarter of 2018, including the negative impact from the new revenue recognition accounting. Our WAP, premium and daily-fee participation ending installed base was impacted on a year over year basis by the long-term strategic relationship we entered into in Oklahoma in the third quarter. On a quarterly sequential basis, we experienced a 111 unit increase in the installed base and a $1.65 increase in average revenue per day. Our installed base on a quarterly sequential basis of other leased and participation games increased by 121 units with average daily revenue down $0.34, which reflects additional lower yielding units in Greece.
  • Gaming machine sales revenue decreased $23.1 million year over year. The prior year included 884 units for new opening and expansion units and 700 VLT units to Canada versus only 286 units in this year’s quarter for new openings and expansions. The average sales price was $16,113, in the fourth quarter reflecting a greater mix of lower priced units.
  • Gaming systems revenue increased $8.1 million to $91.6 million, primarily due to ongoing systems installations in Canada, coupled with increased hardware sales, primarily the iVIEW®4.
  • Table products revenue increased $10.1 million to $60.1 million, reflecting strong global demand for shufflers and table products.

LOTTERY HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2018



Three Months Ended

December 31, 



Increase/(Decrease)

($ in millions)

2018



2017



Amount



%

Revenue





























   Instant products 

$

Advertisement
Stake - Best Online Casino & Sports Betting Platform

150.2





$

151.1





$

(0.9)





(1)

%

   Lottery systems  (1)

80.5





66.1

Advertisement
Stake - Best Online Casino & Sports Betting Platform




14.4





22

%



$

230.7





$

217.2





$

13.5





6

Advertisement
Stake - Best Online Casino & Sports Betting Platform

%

















AEBITDA 

$

105.0





$

94.6





$

10.4





11

%

Advertisement
Stake - Best Online Casino & Sports Betting Platform

AEBITDA margin

45.5%





43.6%









































(1) Lottery systems revenue includes $20.4 million in product sales revenue, compared to $21.5 million in 2017.

  • Total lottery revenue increased $13.5 million, or 6 percent, to $230.7 million. AEBITDA increased 11 percent to $105.0 million, compared to $94.6 million in the prior year, with AEBITDA margin improving to 45.5 percent, primarily reflecting the increased margins on domestic lottery systems revenue.
  • Instant products revenue of $150.2 million was essentially flat from the prior year.
  • Lottery systems revenue increased $14.4 million, or 22 percent, to $80.5 million, driven by a combination of organic growth, higher multi-state jackpot activity in the quarter, a new contract in Kansas and the addition of keno in Pennsylvania.

SOCIAL HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2018

($ in millions)

Three Months Ended

December 31,



Increase/(Decrease)

Revenue



2018



2017

Advertisement
Stake - Best Online Casino & Sports Betting Platform


Amount



%

   Mobile



$

91.2





$

72.0





$

19.2





27

Advertisement
Stake - Best Online Casino & Sports Betting Platform

%

   Web and other 





22.5







23.5







(1.0)





(4)

%





$

113.7

Advertisement
Stake - Best Online Casino & Sports Betting Platform




$

95.5





$

18.2





19

%

































AEBITDA



$

28.3





$

Advertisement
Stake - Best Online Casino & Sports Betting Platform

21.8





$

6.5





30

%

AEBITDA margin



24.9%





22.8%











  • Social revenue grew 19 percent to $113.7 million, reflecting the ongoing popularity of Bingo ShowdownTM, the success of the recently launched MONOPOLY themed casino app and continued growth in Jackpot Party® Social Casino from new game features on our mobile platform.
  • AEBITDA rose 30 percent to $28.3 million, and AEBITDA margin increased to 24.9 percent, primarily reflecting our continued scalable growth in revenue.

DIGITAL HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2018



Three Months Ended

December 31,



Increase/(Decrease)

Advertisement
Stake - Best Online Casino & Sports Betting Platform

($ in millions)

2018



2017



Amount



%

Revenue(1)































   Sports and platform



$

33.3





$

Advertisement
Stake - Best Online Casino & Sports Betting Platform





$

33.3





 nm 



   Gaming and other 





38.2







17.8







20.4





115

%

Advertisement
Stake - Best Online Casino & Sports Betting Platform




$

71.5





$

17.8





$

53.7





302

%

































AEBITDA



$

Advertisement
Stake - Best Online Casino & Sports Betting Platform

11.8





$

5.1





$

6.7





131

%

AEBITDA margin



16.5%





28.7%

Advertisement
Stake - Best Online Casino & Sports Betting Platform










































nm – not meaningful

(1) Includes the results of NYX since the completion of its acquisition on January 5, 2018.



  • Total digital revenue increased to $71.5 million, due in part to $51.7 million of revenue from NYX.
  • AEBITDA was $11.8 million and AEBITDA margin was 16.5 percent, reflecting the addition of NYX and the investment we are making in our domestic and international sports and platform business.

LIQUIDITY



Three Months Ended

December 31,



Increase/

($ in millions)

2018



2017



(Decrease)

Net income (loss) 

$

Advertisement
Stake - Best Online Casino & Sports Betting Platform

206.8





$

(43.1)





$

249.9



Non-cash adjustments included in net income (loss)

136.0





169.7

Advertisement
Stake - Best Online Casino & Sports Betting Platform




(33.7)



Non-cash interest

6.6





3.8





2.8



Changes in deferred income taxes and other

(33.5)





(9.6)





(23.9)



Distributed earnings from equity investments

Advertisement
Stake - Best Online Casino & Sports Betting Platform

8.5





12.9





(4.4)



Change in legal reserves (1)

(334.6)









(334.6)



Changes in working capital accounts 

0.4

Advertisement
Stake - Best Online Casino & Sports Betting Platform




(15.6)





16.0



Net cash (used in) provided by operating activities (2)

$

(9.8)





$

118.1





$

(127.9)



























(1) Includes reversal of a portion of the previously established legal reserve.

Advertisement
Stake - Best Online Casino & Sports Betting Platform

(2) Includes a $151.5 million settlement payment to resolve the Shuffle Tech legal matter.

  • Net cash (used in) provided by operating activities decreased to ($9.8) million from $118.1 million in the year ago period, principally related to the $151.5 million payment to resolve the Shuffle Tech legal matter and a $49.5 million impact from the timing of our interest payments, which were modified in connection with our refinancing transactions.
  • Capital expenditures totaled $97.7 million in the fourth quarter of 2018, compared to $79.6 million in the prior-year period. The increase from the prior year was related to several long-term and highly accretive projects, including ongoing platform development in Digital, the acceleration of our installed base of participation games and WAP games, including the successful rollout of our James Bond franchise, and our 7-year contract extension with Ladbrokes Coral in the U.K.
  • For 2019, we expect capital expenditures to be below 2018 and within a range of $345$375 million, based on existing contractual obligations and planned strategic investments that we believe will be highly accretive to our future cash flow generation.

 

 

About Scientific Games:

Scientific Games Corporation (NASDAQ: SGMS) is a leading developer of technology-based products and services and associated content for the worldwide gaming, lottery, social and digital gaming industries. Our portfolio of revenue-generating activities primarily includes supplying gaming machines and game content, casino-management systems and table game products and services to licensed gaming entities; providing instant and draw-based lottery products, lottery systems and lottery content and services to lottery operators; providing social casino solutions to retail consumers and regulated gaming entities, as applicable; and providing a comprehensive suite of digital RMG and sports wagering solutions, distribution platforms, content, products and services. We also gain access to technologies and pursue global expansion through strategic acquisitions and equity investments.

 

 

Source: Scientific Games Corporation

Continue Reading
Advertisement
Stake - Best Online Casino & Sports Betting Platform

Gambling in the USA

Scientific Games’ iLottery Games Portfolio Expands as Pixiu Gaming Joins SG Content Hub

Published

on

Exciting New Hasbro-Licensed MONOPOLY and BATTLESHIP iLottery Games Coming Via SG Content Hub

Scientific Games welcomed Pixiu Gaming as the newest studio partner to the SG Content Hub. Pixiu Gaming joins the government-regulated lottery industry’s premier iLottery content delivery platform, featuring an expanding, highly curated selection of iLottery games from Scientific Games and partner studios around the globe. The games are available to lotteries in multiple languages and in a variety of play styles for all player segments.

 

Widely recognized as the leading supplier of Keno games in North American regulated gaming markets, Pixiu Gaming is a boutique developer focused on authentic, engaging and player-centric games. Founded in 2014 and based in London, UK with a remote global team, Pixiu is named after a fierce Chinese mythical creature that attracts and preserves great wealth.

Scientific Games, the world’s largest lottery games company, is collaborating with Pixiu Gaming to bring exciting new MONOPOLY and BATTLESHIP iLottery games to lotteries through its exclusive licensing agreement with Hasbro. Games created by Pixiu Gaming will be available in the SG Content Hub, in addition to games from Scientific Games’ own SG Studios and other premier partner studios worldwide.

Tony Plaskow, Pixiu Gaming Co-Founder, said, “Pixiu Gaming is thrilled to join the SG Content Hub to bring our games to more lotteries. We look forward to working with Scientific Games and Hasbro to create exciting, brand-sensitive MONOPOLY and BATTLESHIP-themed iLottery game experiences. These iconic brands are familiar worldwide, and each provides the perfect mix of strategy and luck. We will weave a true-to-brand digital game experience with fun, simple-to-understand content that entertains players.”

Matt Lynch, President, Digital for Scientific Games, said, “We are very excited to partner with Pixiu Gaming, an up-and-coming studio. Their unique approach to game development and artistic vision brings a differentiated offering to market that will add depth to iLottery portfolios by expanding game play options for existing players while bringing new game experiences to attract new players. Scientific Games is focused on creating an unparalleled range of playstyles and game mechanics for players with the SG Content Hub, and we are proud to soon include play experiences from Pixiu Gaming.”

SG Content Hub offers partner studios select exclusively licensed brands from the company’s portfolio of more than 100 licensed brands, which also includes other Hasbro-licensed games such as CONNECT 4, THE GAME OF LIFE and YAHTZEE. MONOPOLY is perennially the lottery industry’s top performer, with 33 lotteries worldwide offering MONOPOLY-themed games in fiscal year 2025, resulting in more than $2 billion in retail and digital sales during the year.

Scientific Games provides retail and digital games, technology, analytics and services to 150 lotteries in 50 countries worldwide. The company is a digital lottery innovator offering lotteries entertaining game content featuring the most extensive portfolio of licensed brands in the industry, and world-leading digital programs, including CRM, loyalty, promotions, second chance, mobile and web applications.

BATTLESHIP, CONNECT 4, THE GAME OF LIFE, YAHTZEE and HASBRO and all related trademarks and logos are trademarks of Hasbro, Inc. ©2025 Hasbro.

Advertisement
Stake - Best Online Casino & Sports Betting Platform

The MONOPOLY name and logo, the distinctive design of the game board, the four corner squares, the MR. MONOPOLY name and character, as well as each of the distinctive elements of the board and playing pieces are trademarks of Hasbro for its property trading game and game equipment. © 1935, 2025 Hasbro. All Rights Reserved.  Licensed by Hasbro.

© 2025 Scientific Games, LLC. All Rights Reserved.

Continue Reading

Gambling in the USA

Caesars Entertainment Bolsters Online Casino Live Dealer Offering with the Launch of Branded Live Dealer Studio in Michigan

Published

on

 

Caesars Entertainment Inc. announced the launch of its third branded online casino live dealer studio, available now to players on Caesars Palace Online Casino, Horseshoe Online Casino and Caesars Sportsbook & Casino in Michigan. Developed in partnership with Evolution, the new studio reinforces Caesars’ commitment to delivering world-class, immersive experiences across its online platforms, inspired by the iconic atmosphere of its Caesars Rewards destinations.

The debut of the new studio marks Caesars’ third branded live dealer studio that has opened in 2025 and draws inspiration from table game play at the Las Vegas Strip’s most iconic casino, Caesars Palace. Its opening follows the successful launch of Caesars’ first branded studio with Evolution in Pennsylvania in January. In April, the Company also debuted its first studio inside a Caesars Rewards destination at Tropicana Atlantic City in New Jersey.

“Our third live dealer studio expands our fully customized live dealer experience that is already extremely popular in Pennsylvania and New Jersey into another key jurisdiction where our online casino platforms are live. The studio design takes inspiration from our flagship destination, Caesars Palace, to authentically recreate the atmosphere of Las Vegas for online players. We look forward to our Michigan players enjoying the new experience,” said Matthew Sunderland, Senior Vice President and Chief iGaming Officer at Caesars Digital.

The new live dealer studio in The Great Lakes State is composed of five blackjack tables, including a VIP-exclusive blackjack table, one roulette table, and one baccarat table. The tables are adorned with custom-branded felts featuring iconic Caesars destinations and each marquee online casino platform, including Caesars Palace Online Casino, Caesars Sportsbook & Casino, Horseshoe Online Casino, and, for the first time, Tropicana Online Casino.

Select tables also feature custom felts co-branded through partnerships with professional sports teams. Like Caesars Rewards destinations across North America, the studio caters to VIP players with an exclusive high-limit blackjack table offering an authentic 1-to-1 live experience that could previously only be found in a physical casino.

“As the global leader in online live casino with nearly two decades of experience, Evolution is proud to partner once again with Caesars to launch this bespoke live dealer studio in Michigan. The studio brings the unmistakable character of Caesars’ iconic destinations to the online space, offering players in the state a polished, immersive entertainment experience that mirrors the energy and elegance of the casino floor. It’s another bold step forward in our shared commitment to innovation and quality at scale in the online live casino market,” said Marcus Huber, Chief Commercial Officer of Evolution North America.

Caesars Palace Online Casino, Horseshoe Online Casino and Caesars Sportsbook & Casino are available on iOS, Android, and desktop for those 21 and older in New Jersey, Pennsylvania, Michigan, Ontario, and West Virginia. Each platform offers a dynamic online casino experience with a range of unique Caesars-branded games alongside hundreds of classic land-based casino favorites and core casino game mechanics, including high limit slots, private live dealer tables, linked progressive jackpots, variations of poker and roulette, and more.

Continue Reading

Gambling in the USA

Snoqualmie Casino & Hotel Unveils Expanded Non-Smoking Gaming Floor

Published

on

 

Snoqualmie Casino & Hotel has officially opened its newly expanded non-smoking gaming floor, marking a significant milestone in the property’s continued commitment to exceptional guest experiences.

Located adjacent to the hotel lobby, the new, larger non-smoking slot floor will feature nearly 400 of today’s most popular slot machines in a fresh, modern environment designed exclusively for non-smoking guests. This addition enhances the casino’s dedication to providing smoke-free gaming options in a luxury setting. For convenience and ease of access, non-smoking guests can also take advantage of the smoke-free entrance via the hotel’s valet parking.

This new space complements Snoqualmie Casino & Hotel’s existing fully enclosed, non-smoking slot area near Falls Buffet and Snoqualmie Café & Deli, offering guests even more choice and accessibility when it comes to their preferred gaming environment.

In addition to these gaming enhancements, all restaurants on property are 100% non-smoking, making Snoqualmie Casino & Hotel a premier destination for guests seeking an elevated, smoke-free entertainment and dining experience.

“We’re thrilled to offer our guests even more smoke-free options. The expansion of our non-smoking gaming floor reflects our ongoing efforts to listen to our guests and create an atmosphere that’s both exciting and comfortable for everyone,” said Mary Lou Patterson, CEO of Snoqualmie Casino & Hotel.

Continue Reading

Trending

GamingAmericas.com (part of HIPTHER) is your one-stop portal for the latest news, insights, and analyses in the gaming industry across the Americas. From legislative updates and market trends to interviews with industry leaders, we provide a comprehensive look at the dynamic landscape of both online and land-based gaming. Whether you're a stakeholder looking to stay ahead of the curve or a gaming enthusiast eager for reliable updates, GamingAmericas.com has got you covered. Follow us on social media and subscribe to our newsletter for real-time updates and exclusive content. Make informed decisions and stay ahead in the game with GamingAmericas.com.

Disclaimer: All the information provided is for educational and entertainment purposes only. Always check your local laws before participating in any gaming activities.

Copyright © 2018 – 2025, HIPTHER. All Rights Reserved.