Provider of technology and content for the international gambling industry Scientific Games Corp. announced on Thursday its financial results for the quarter and the calendar year ended December 31, 2015. Revenue for the fourth quarter of 2015 amounted to $737 million, up from the $565.8 million posted for the same period of 2014. Annual revenue totaled $2.8 billion.
The company attributed the increase in quarterly revenue to the shipment of 8,990 gaming units worldwide, with 5,366 of those being shipped to North American customers, as well as the rise in revenue generated by its interactive division.
Attributable EBITDA amounted to $292.9 million, up from the $173.3 million posted for the three months ended December 31, 2014. Full-year attributable EBITDA also increased to reach a total of $1.1 billion.
Scientific Games reported a fourth-quarter net loss of $128 million. In comparison, net loss of $47.1 million was generated in the fourth quarter of 2014. Full-year net loss totaled $1.4 billion. The company said that its annual financial results benefited from the implementation of annualized cost synergies of $231 million.
Net cash from operating activities amounted to $159 million in the fourth quarter of 2015 compared to $30 million reported in the prior-year period. Annual net cash from operating activities totaled $414 million. In comparison, the amount of $204 million was posted for the fourth quarter of 2014.
Scientific Games’ gaming segment generated quarterly revenue of $469 million in 2015, up 55.5% year-on-year. Operating income from the division totaled $53.6 million compared to operating loss of $142.9 million reported for the three months ended December 31, 2014. Attributable EBITDA increased 109.8% year-on-year to reach $221.3 million.
During the fourth quarter of 2015, the company’s lottery segment generated the amount of $207.7 million in net revenue, down 6.1% year-on-year. It also reported operating loss of $63.4 million compared to operating income of $42.9 million posted for the same period of 2014. Attributable EBITDA increased 7.1% to $90.6 million.
Quarterly net revenue from Scientific Games’ interactive division amounted to $60.3 million, up 40.2% year-on-year. Operating profit of $9.6 million was posted for the period. In comparison, operating income of $0.1 million was generated in the fourth quarter of 2014. Attributable EBITDA increased 57% to reach $13.5 million.
Scientific Games said that last year was transformational for the company but that it managed to finish it with excellent quarterly results. It also pointed out that innovation was what drove the strong performance in the three months ended December 31, 2015 and what is currently driving its momentum in 2016. Scientific Games promised that it would keep on improving its business processes so as to reduce leverage and increase cash flow.
