Scientific Games, a casino tech company based in the US, is facing a critical financial situation. The company is a reputed specialist in surface casino paraphernalia, such as e-gaming machines like online slots. However, its 2018 financial report recorded a massive financial deficit at a global level.
As per a report for the year 2019, it was believed there was some kind of improvement, though it remains a vague assumption. According to the annual books, there was a loss of $118m as opposed to last year’s $352m.
It needs to be mentioned that due to anti-trust litigation, 2018 was a very turbulent year for the company. In order to offer breathing space, a $183 million reserve was overturned.
There was a net profit in the fourth quarter of 2019, revealing a turnaround in revenue. Though last year’s final quarter showed a profit of net worth $207 million, the final quarter of the current year once again revealed a $37 million loss.
An in-depth study of the 2019 report revealed the two main reasons for Scientific Games’ business losses. There was a 2.6% fall in total quarterly profit, which was at $863 million in contrast to $886 million of the previous year. The loss was attributed to a lower sale of electronic machines as well as a lack of launches in Canada in respect of complete systems.
There was an almost full percent increase in casino earnings for the entire 2019 at a $3.4 billion grand total. There was a final quarter drop in adjusted EBITDA by 4.3%, sliding from $343 million to $328 million.
Michael Quartieri, Scientific Games CFO speaking further on the report, stressed that their main agenda for 2019 was to cut down on debts, and considerable progress had been made in the area. He pointed out that there was an overall reduction in debt by more than $460 million, which should not be overlooked. He further elaborated that there would be a substantial cutback on cash interest in view of two successful refinancing transactions.
Quartieri further stated that the organization’s chief obligations were focused on two main areas. In order to achieve longstanding success, they needed to achieve absolute growth. Secondly, they would focus on discovering unchartered territories that could open avenues to better financial growth.
Barry Cottle, CEO at Scientific Games, explained that considerable progress had been made throughout 2019 in terms of hiring skilled hands, trend-setting casino slots, and the financial status of the company taking a positive turn.
He went on to state that the finest teams were at hand to reverse the situation and lead the company to be crowned monarch of surface-based gaming, which includes casino gaming, real sports betting, and lottery. He stated that all factors were in place to expand cutting edge technology in the coming years.
Based on the many noteworthy deals the company had acquired in the last months, Cottle believed it was proof enough that Scientific Games was moving ahead on the right track to overtake the surface-based market.
It remains to be seen whether Cottle’s words carry any weight, but it cannot be denied that the company has definitely made a positive turnabout.
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