Scientific Games today announced results for the fourth quarter and year ended December 31, 2011.
The company’s US instant ticket and lottery systems customers' retail sales increased 8.5 per cent and 2.7 per cent, respectively, in the fourth quarter of 2011 compared to the prior-year period and increased 6.5 per cent and 0.1 per cent, respectively, in the full-year 2011 compared to the prior-year period, based on third-party data.
China Sports Lottery instant ticket retail sales increased 15.7 per cent in the fourth quarter of 2011 versus the prior-year period; full-year 2011 sales reached a record level of approximately RMB20bn, a 21.4 per cent increase over 2010 sales. Italian instant ticket retail sales were flat in the fourth quarter of 2011 compared to the prior-year period; full-year 2011 sales reached euro €10.2bn, an 8.4 per cent increase over 2010 sales.
The Global Draw's UK total gross win and gross win per machine per day increased approximately 71.0 per cent and 8.3 per cent, respectively, in the fourth quarter of 2011 versus the prior-year period and increased 52.6 per cent and 6.7 per cent, respectively, in the full-year 2011 versus the prior-year period.
The company signed a contract with the Illinois Gaming Board to provide a management and central communication system to operate up to 60,000 terminals for six years, with options for four one-year extensions.
Illinois Lottery instant ticket sales increased approximately 26 per cent for the first six months of the lottery's fiscal year ending June 30, 2012, which coincides with the operation of the Northstar private management agreement.
"This is a truly exciting time for the lottery and gaming industries and, of course, for Scientific Games," chairman and CEO A Lorne Weil commented. "We are pursuing a number of growth initiatives, including lottery privatisation and other outsourcing models and expansion of our international lottery and gaming businesses.”
Jeffrey S Lipkin, senior vice president and CFO, added: "We're pleased that our business continued to perform well across all segments, and that our revenue has grown both sequentially and year-over-year in each quarter of 2011. While the acquisition of Barcrest and our ongoing investments in our growth initiatives impacted our profitability this quarter, we anticipate capitalising on these investments in 2012 and beyond as we expect various business development initiatives to come to fruition and we realise synergies from the Barcrest acquisition."
