Scientific Games hit by first-quarter losses
Gaming solutions provider Scientific Games said that it is “well positioned” in the market despite having suffered year-on-year losses during the three months to March 31, 2014.
Although the company was able to report revenue of $388.1 million (€280.8 million) in the first quarter, a year-on-year increase of 76.7% that reflected the first full quarter of contribution from the WMS acquisition, it suffered losses elsewhere.
The firm recorded an operating loss of $12.1 million, which is down on a positive result of $11.1 million in the corresponding quarter last year.
The firm also reported that net loss increased from a negative of $12.3 million in Q1 of 2013 to a loss of $45 million in the most recent quarter.
However, the company was able to report growth in attributable earnings before interest, tax, depreciation and amortisation, which increased by 58.2% from $77.6 million in the previous year to $122.8 million in Q1 of 2014.
Despite the losses, Scientific Games president and chief executive officer David Kennedy remained upbeat about the firm’s position and is confident about the remainder of 2014.
“Although we are seeing challenging gaming industry conditions that have negatively impacted our gaming product sales results, we believe that Scientific Games is relatively well positioned due to the diversity of revenue streams in our lottery and gaming businesses and the opportunities created by our integration efforts,” Kennedy said.
“We continued to accelerate our integration initiatives in the 2014 first quarter and believe we remain on track to achieve at least $60 million of cost savings on an annualised run-rate basis by the end of 2014.”