The Moody’s Investors Service has raised the perspective of Scientific Games Corp as a ‘secure’ casino equipment supplier unit from ‘negative.’ online casino games The step reflects the turnaround of the gaming activities of the company as the amount of gaming installations opened uphttps://www.kelab88.com/sg/en-us/ has raised sales and profits for the company, Moody’s said in the rating update released on Friday.
The rating agency affirmed the corporate family’s ‘B3,’ an investment grade considered as a ‘speculative, credit risk’ by Scientific Games International Inc.
Moody’s said in its update that while the turnaround was “anticipated” sequentially in 2021, it forecasted gaming activity “underpin” until 2022 at least, with the company’s leverage remained higher. Scientific Games Corp. reported that its net loss was US$ 84 million for the fourth quarter of 2020 compared the third trimester to US$ 111 million, but was greater than the loss in the previous year’s figure of US$ 37 million. The Games Corp. The company also offers web gaming and lottery services.
For the three months ended December 31, the parent company posted sales of US$ 762 million down 11.7 percent from the fourth quarter of 2019. The company reported that a decrease in revenue was associated with a decrease in their revenues in the play division, as Covid-19 controls on casinos worldwide have affected them. As at 31 December 2020, the Group’s net debt had decreased by US$8,39bn from US$8,59bn a year before.
Moody’s commentary on Friday also confirmed that the shift in the perspective of Scientific Games International was backed by the company’s strong cost discipline and more durable lottery. It also said, these factors along with the recovery in capex have made it possible to produce a positive free cash flow of more than US$280 million in 2020 and Moody project has achieved a comparable amount of free cash flow, considering the growth in capex in 2021.
The number for the fourth trimester was more than the loss recorded by the organisation in the past year, 37 million dollars in the final quarter of 2020, as a result of lower sales.
Scientific Games reported a turnover of 762 million US dollars, down 11.7 percent from the fourth quarter of 2019 for the three months ended 31 December. The company reported the decrease in sales in its gambling sector as the effect on Covid-19 regulations on casinos worldwide was associated with decreases in revenues. The firm reported an increase in its sales by 9.2 percent compared to the 3rd quarter of 698 million US dollars, which benefitted from gaming changes.
The fourth quarter
In the fourth quarter, income grew sequentially from 23.8% to 286 million dollars in the conventional gaming market. This included a rise of 14.1% in gambling to 105 million dollars and a single third growth in sales of gaming machines to 96 million dollars.
New shipments from the gambling machines in the international segment – including the Asia-Pacific area – tripled sequentially from 1 887 during the three months ended 30 September to 5784 in 3 months up to 31 December. The total shipment, from the third quarter to 8,336, increased two-thirds, including new unit shipments in the U.S. and Canada.