Sci Games Q4 digital revenues hit $72m
Company reports 11% organic growth but NYX is “struggling to gain meaningful traction” according to Regulus Partners
Scientific Games has reported 11% organic growth in its digital division, with Q4 digital revenues hitting $71.5 million.
NYX accounted for $51.7m of the digital total, with 64% of that coming through sports and platform (Openbet) and 36% through ‘gaming and other’.
Regulus Partners noted Sci Game’s pre-existing digital games content arm was performing well (11% growth) but said NYX was still struggling to gain “meaningful traction”.
“While the group now has a digital division which is material in terms of scale, it is not yet in a position to significantly move the dial in terms of overall growth and cash flow,” Regulus said.
AEBITDA from the division was $11.8m on an AEBITDA margin of 16.5%.
The overall SG group grew 1.3% organically, or 8% including the NYX acquisition, to $885.7m in Q4.
“This is a very exciting time for Scientific Games,” said CEO and president Barry Cottle.
“We’re focused on developing the best games and the most innovative platforms to deliver outstanding gaming experiences wherever and whenever players choose to play.
“We are building momentum and continuing to grow our business while at the same time operating more efficiently. The entire organization is enthused about 2019 and focused on helping our customers win, which will drive our free cash flow and create meaningful value for our shareholders.”
SG shares were up almost 10% Thursday morning.