Scientific Games hails social gaming success in third quarter
Scientific Games has cited growth within its social gaming and gaming machine divisions as key reasons behind a year-on-year rise in revenue during the three months to September 30.
Revenue amounted to $720 million (€648.6 million) in the third quarter, up 7% on the corresponding period last year.
The company’s social gaming business experienced a revenue increase of 81% in the quarter, while gaming machine sales were also up by 22% year-on-year.
Operating income for the overall business came in at a plus of $33.5 million, up from negative $988.2 million in the third quarter of 2015, which included a $935 million goodwill impairment charge and $103.6 million of impairment charges for certain intangible assets.
Meanwhile, net loss improved from just under $1.1 billion last year to $98.9 million in the most recent quarter, with attributable EBITDA also up by 3% to $271.6 million.
Net cash from operating activities rose 7% to $150.9 million, while Scientific Games was also able to pay down a total of $42.4 million of debt in the quarter.
Cash and availability under the firm’s revolving credit facility totalled $607.3 million as of the end of September.
“Scientific Games is focused on building momentum; the dedicated efforts of our employees combined with the benefits that our products and technology solutions deliver to our gaming, lottery and interactive customers and players led to year-over-year increases in revenue, AEBITDA and free cash flow,” chief executive and president, Kevin Sheehan, said.
“As we look forward, it is time to transform the way we operate by creating a simpler, more efficient and nimble organisation with a laser focus on our core businesses.
“Our priorities are to drive further innovation to create new, differentiated products for our customers that power growth; focus on prudent fiscal management to improve financial returns and free cash flow to accelerate deleveraging; and build a corporate culture open to new ideas and opportunities that help to accelerate our progress.”
Michael Quartieri, executive vice-president and chief financial officer, added: “We are increasing our concentration on disciplined cost management with process improvement and lean initiatives across our global businesses.”
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