• 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
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Telsey lowers 2019 estimate for Sci Games’ EBITDA

Aug 06, 2019 Newsdesk Latest News, Top of the deck, World  


Telsey lowers 2019 estimate for Sci Games’ EBITDA

U.S.-based brokerage Telsey Advisory Group LLC maintains a positive outlook on casino equipment and lottery services supplier Scientific Games Corp, but it now expects the firm to report lower earnings before interests, taxation, depreciation and amortisation (EBITDA)  for full-year 2019.

Telsey Advisory Group said in a Tuesday note that it was adjusting its estimates “to reflect a more realistic view of equipment spending trends by casino operators”. The memo followed the announcement of Scientific Games’ second-quarter results last week. The casino equipment supplier said its unaudited second-quarter gaming revenue decreased by 9.3 percent year-on-year to US$427 million, and the firm’s consolidated EBITDA fell by 1.5 percent year-on-year to US$335 million in the period.

“Our 2019 estimated EBITDA moves from US$1.34 billion to US$1.326 billion while our 2020 estimated EBITDA goes from US$1.406 billion to US$1.355 billion,” Telsey Advisory Group said in its Tuesday note, noting that it maintained an “outperform” rating for the casino supplier firm.

The brokerage said it was modeling Scientific Games’ slot replacement sales for this year to be “just 13,500”, a tally that is lower than the 16,185 units sold in 2018, with pricing to “remain flat to slightly negative”. Market-wide in the North America, the brokerage expects replacement units to come in “closer to 60,000” in the full-year 2019.

“We expect tribal replacements to remain healthy but for corporate buyers to remain slow for the remainder of 2019. We also continue to assume modest growth in international slot sales in 2019,” wrote analysts Brian McGill and Alec Cummings.

The brokerage also assumed “slight pressure” on Scientific Games’ slots installed base going forward, as casino operators continue to cut costs by reducing slot participation expenses. Scientific Games’ total installed base for the second quarter stood at 66,908 units, of which half of them were installed in international markets.

The brokerage assumes a positive outlook on Scientific Games’ free cash flow for this year.

“The outlook remains positive on a yield basis, given the stock price. We continue to believe the company will report strong cash flow in 2019, which should help it to further delever. The company noted that it remains on schedule to achieve its target leverage of 5.5 times by the end of 2020 (currently at 6.5 times),” said the analysts.


  • tweet
Related articles
  • Macau casino 1Q EBITDA softer sequentially: MS
    Macau casino 1Q EBITDA softer...

    Apr 12, 2021  

  • Success Universe complex posts US$31mln 2020 EBITDA loss 
    Success Universe complex posts US$31mln...

    Mar 31, 2021  

More news
  • Mohegan to cut debt/EBITDA soon says Moody’s
    Mohegan to cut debt/EBITDA soon says...

    Apr 12, 2021  

  • Philippines needs AML reform on casino biz: IMF
    Philippines needs AML reform on casino...

    Apr 12, 2021  


Latest News

Macau casino 1Q EBITDA softer sequentially: MS

Macau casino 1Q EBITDA softer sequentially: MS

Apr 12, 2021  

Banking group Morgan Stanley expects Macau casino industry earnings before interest, taxation, depreciation and amortisation (EBITDA) to have fallen sequentially in the first quarter, despite an...
Read More
Mohegan to cut debt/EBITDA soon says Moody’s

Mohegan to cut debt/EBITDA soon says Moody’s

Apr 12, 2021  

Philippines needs AML reform on casino biz: IMF

Philippines needs AML reform on casino biz: IMF

Apr 12, 2021  

Manila quarantine easing to April 30, casinos shut for now

Manila quarantine easing to April 30, casinos shut for now

Apr 12, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


150

Total number of gaming tables to be in operation at the expanded Jeju Lotte Tour Casino in South Korea



Most Popular

  • GEN Malaysia may deleverage within 2 years says FitchGEN Malaysia may deleverage within 2 years says Fitch April 7, 2021
  • Moody’s expects MGM, Wynn to pursue large IR development Moody’s expects MGM, Wynn to pursue large IR development  April 8, 2021
  • Macau daily visit volume down 17pct m-o-m for April 2 to 6Macau daily visit volume down 17pct m-o-m for April 2 to 6 April 8, 2021
  • Macau, mainland bust gambler-targeted money scam ringMacau, mainland bust gambler-targeted money scam ring April 8, 2021
  • China probed 17,000-plus cross-border gambling casesChina probed 17,000-plus cross-border gambling cases April 9, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us