• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Scientific Games already working Bally synergies: analyst

Jan 09, 2015 Newsdesk Industry Talk, Latest News  


Scientific Games already working Bally synergies: analyst

Scientific Games Corp “is already executing on some synergies” following the acquisition of Bally Technologies Inc, said brokerage firm Wells Fargo Securities LLC.

Scientific Games, a U.S.-based specialist in lottery equipment and management, in November completed the acquisition of slot maker Bally Technologies, based in Las Vegas, in a deal worth US$5.1 billion.

“The quick realisation of synergies is necessary for Scientific Games to generate cash and de-lever swiftly,” a group of Wells Fargo analysts led by Cameron McKnight wrote in a report on Thursday.

They added: “We believe Scientific Games is already making progress with its synergy programme. Checks suggest Scientific Games began streamlining its cost structure in mid-December. We believe decisions on headquarters, headcount and production facilities could occur in Q1 and serve as positive short-term catalysts.”

Scientific Games has said it expects synergies arising from the integration of Bally Technologies will lead to US$235 million in cost savings. The firm plans to realise about 80 percent of those savings by the end of 2015, Wells Fargo said.

“While we believe the roughly US$130 million of headcount-related synergies is tangible, there is less visibility regarding the remaining US$105 million of non-headcount related synergies,” the brokerage noted.

Well Fargo downgraded Scientific Games from ‘Outperform’ to ‘Market Perform’ but maintained its US$12 to US$13 valuation range.

“We see balanced risk/reward here given generally low near- to medium-term visibility,” the analysts said. “If Scientific Games can execute on its synergy targets and gaming equipment industry fundamentals stabilise, we see a potential path to US$20/share.”

But they cautioned: “However, with 7x net leverage, we also see a potential case for US$7/share on any potential setbacks.”

Wells Fargo advised investors to move to the sidelines until the investment case and fundamental outlook becomes clearer, “which could occur late 2015”.


  • tweet
Related articles
  • ‘Stunt Stars’ new slot game from Lightning Box
    ‘Stunt Stars’ new slot game from...

    Jan 05, 2023  

  • Wilson global CEO Light & Wonder, Lane CEO gaming
    Wilson global CEO Light & Wonder,...

    Oct 11, 2022  

More news
  • Pagcor chairman keynote speech at SiGMA Asia
    Pagcor chairman keynote speech at SiGMA...

    Mar 28, 2023  

  • 3-month eVisa plan to boost Vietnam tourism: report
    3-month eVisa plan to boost Vietnam...

    Mar 28, 2023  


Latest News

Pagcor chairman keynote speech at SiGMA Asia

Pagcor chairman keynote speech at SiGMA Asia

Mar 28, 2023  

Alejandro Tengco (pictured), chairman and chief executive of the Philippine Amusement and Gaming Corp (Pagcor), is to give the keynote speech for the opening of the SiGMA Asia conference for the...
Read More
3-month eVisa plan to boost Vietnam tourism: report

3-month eVisa plan to boost Vietnam tourism: report

Mar 28, 2023  

Kangwon Land slot brand Manila office eyes SE Asia sales

Kangwon Land slot brand Manila office eyes SE Asia sales

Mar 28, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”The data and evidence on hand all point to the same conclusion: enough is enough. It is time to ban offshore gaming operations in the Philippines, once and for all”

Sherwin Gatchalian

Chairman of the Committee on Ways and Means of the Senate of the Philippines



Most Popular

  • Raffles hotel checks complete at Galaxy Phase 3: MGTORaffles hotel checks complete at Galaxy Phase 3: MGTO March 27, 2023
  • Melco’s Studio City has foreigner-only bet zone: checksMelco’s Studio City has foreigner-only bet zone: checks March 27, 2023
  • Foreigners can use HK-Macau free ticket says tourism bossForeigners can use HK-Macau free ticket says tourism boss March 27, 2023
  • Philippine lawmaker wants POGOs shut within 3 monthsPhilippine lawmaker wants POGOs shut within 3 months March 27, 2023
  • Macau diversification into non-gaming to remain slow: FitchMacau diversification into non-gaming to remain slow: Fitch March 24, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us