QUOTE AND NEWS
Motley Fool  Aug 5  Comment 
Better-than-expected second-quarter results weren't enough to stop the stock's sell-off on Friday.
Forbes  Jul 22  Comment 
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Expedia Inc (NASD: EXPE), where a total of 8,798 contracts have traded so far, representing approximately 879,800 underlying shares. That...
Motley Fool  Jun 26  Comment 
Billions of dollars in acquisitions have left two of the world's largest casino suppliers in a terrible position now that the whole gambling industry is on tilt.
Benzinga  May 26  Comment 
Now that Q1 earnings season for U.S. gaming stocks has come and gone, Goldman Sachs analyst Steven Kent recently revisited the firm’s outlook for Las Vegas Sands Corp. (NYSE: LVS), Penn National Gaming, Inc (NASDAQ: PENN) and Scientific Games...
Benzinga  May 26  Comment 
Goldman Sachs maintains its Sell rating on Scientific Games Corp (NASDAQ: SGMS) after its weak first-quarter results and continued challenges in its gaming operations. Gaming operations were hurt as WAP/premium installed base dropped 5 percent,...
Motley Fool  May 6  Comment 
Revenue is up, but so is the company's loss per share. Here's what investors should know.




 

Based in New York City, Scientific Games Corporation (SGMS) is a global information technology (IT) systems and services company that provides instant ticket and online lottery products, systems and services to lottery authorities worldwide. Scientific Games is also the leading provider of computerized systems and services to the pari-mutuel wagering industry, an operator of off-track betting (OTB) facilities, and a leading manufacturer of paper-based prepaid phone cards.

Scientific Games continues to benefit from its strong and growing presence in the worldwide instant ticket and online lottery markets. Within the instant ticket lottery market, the company started instant ticket lottery contracts for lottery authorities in Georgia, Tennessee, and Texas over the past two years. The company also signed a four-year contract with the California State Lottery, three-year contracts in New York and Illinois, and two-year contracts in Colorado and Vermont. Additionally, the company was awarded contract extensions from lottery authorities in Indiana, Kentucky, Washington, and West Virginia during the second half of 2005. In addition to strong and growing relationships with state lottery authorities, the company benefits from its licensed instant ticket brands, such as Texas Hold'em from the World Poker Tour, Pac-Man, Yahoo!, and American Idol.

Business Overview

Business & Financial Metrics[1]

In 2009, SGMS incurred a net loss in $39.8 million on revenues of $927.7 million. This represents a 789.2% jump in net loss and a 17.1% decrease in revenues from 2008, when the company lost $4.5 million on $1.12 billion in revenues.

Business Segments[2]

SGMS is divided into three reportable business segments.

  • Printed Products Group (50.3% of revenues): This segment represents the company's instant lottery ticket business.[3]
  • Lottery Systems Group (27.7% of revenues): This segment sells customized computer software to government-sponsored and privately-operated lotteries.[4]
  • Diversified Gaming Group (22.0% of revenues): This segment sells services and systems to operators in the gaming and wagering industries. The segment sells server-based gaming machines, video lottery terminals, and sports betting systems.[4]

Competition

In the United States, SGMS's primary competitors in the instant lottery ticket market are Pollard Banknote Inc FD (PBL) and GTECH. In the lottery systems market, the company's major competitors are GTECH and Intralot (ATH:INLOT). The company's competitors in the video gaming terminal market are:

References

  1. SGMS 2009 10-K pg. 45  
  2. SGMS 2009 10-K pg. 124  
  3. SGMS 2009 10-K pg. 3  
  4. 4.0 4.1 SGMS 2009 10-K pg. 4  
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