While 2019 isn’t even ten weeks old, it’s already been quite a year for Scientific Games Corp. (SGC). In January, Matt Davey took over as the new SG Digital chief. Also, Jordan Levin took on his new role as Executive Vice President. Now we’re learning that the company plans to issue a series of senior unsecured notes valued at £831,589,767 ($1.1 Billion). According to SGC, this will help pay for another series of notes set to mature in 2022. As for the new notes, they’re due to go in effect in 2026.
Securing £156,238,995 ($206.8 Million) in net profits during the fourth quarter of 2018, the company seems to be on the right track. In fact, that’s £188,992,975 ($250 Million) more than what they saw during Q4 2017. Not only did SGC see a huge increase in their gaming operations, but they were also able to save £135,904,715 ($180 Million) in a legal settlement with Shuttle Tech. The company was expecting to shell out nearly £253,000,000 ($335 Million), so this helps as they plan for 2019.
With all the additional sources of online casino revenue, SGC says it’s time to pay off £754,744,388 ($1 Billion) in unsecured notes in 2022. Yet, despite all the Q4 growth in 2018, the company still lost £266,328,298 ($353 Million) last year! Which, is £83,020,969 ($110 Million) more than what they lost in 2017. With all the extras sources of revenue, there are still concerns if they’ll be able to pay the unsecured notes due in 2022.
All and all, it’s quite surprising to see that SGC is having financial problems. In fact, their casino games are some of the most popular in both brick and mortar casinos and online casinos too! Plus, the company is also investing a lot of money in research, development and product innovation. So possibly their banking on innovation profits to pay the unsecured notes by the due date!