Scientific Game

Scientific Games announces improved third quarter results

Friday, 03 November 2017 04:07
Share
Visit us

Global gaming giant Scientific Games Corporation reported a 7% increase in revenue for the three months to 30 September 2017 to US$768.9 million, driven by growth in each of its gaming, lottery and interactive segments.

Operating income for the quarter increased 170% to US$90.6 million from US$33.5 million 12 months earlier, reflecting “revenue growth, a more profitable revenue mix, more effective business processes and lower depreciation and amortization,” the company said.

Net loss declined to US$59.3 million from US$98.9 million in the prior-year period, reflecting the improvement in operating income and a US$16.5 million decrease in interest expense, partially offset by a US$8.4 million loss from financing transactions and a US$15.5 million decrease in income tax benefit. 

Attributable EBITDA increased 10% to US$299.0 million from US$271.6 million a year ago, primarily driven by higher revenue, a more profitable revenue mix and more effective business processes.

“This quarter each business segment achieved revenue and Attributable EBITDA growth,” said CEO Kevin Sheehan. “We showcased industry-altering innovation at NASPL and G2E, we were named ‘Industry Land-Based Supplier of the Year’ and announced our intent to acquire NYX, the industry leader in digital real-money gaming and sports betting. We are excited by the acquisition of NYX and the opportunities to grow our digital business.

“We are growing our businesses, expanding our product portfolio, improving our processes, enhancing our operating margin, paying down debt and delivering positive results.”

Scientific Games’ agreement to acquire NYX Gaming Group at a total enterprise value of US$631 million will be partially funded by the issuance of US$350 million aggregate principal amount of 5.000% senior secured notes due 2025.

The company also completed a refinancing of its US$3.28 billion of existing term loans in order to lower the applicable interest rate by 75 basis points and extend maturity to 2024. 

Chief Financial Officer Michael Quartieri said, “Our improved performance is enabling us to strengthen our balance sheet and lower our cost of capital.

“At quarter-end, our net debt leverage ratio decreased to 6.7 times trailing twelve-month AEBITDA, down from 7.4 times a year ago. We remain committed to our path of deleveraging while capitalizing on meaningful opportunities to grow our business.”

What's new

SKYCITY signs construction agreement for Adelaide Casino expansion

SKYCITY signs construction agreement for Adelaide Casino expansion SKYCITY Entertainment Group has signed a construction agreement with Hansen Yuncken for the AU$330 million redevelopment and expansion of Australia’s Adelaide Casino. The agreement with the leading building contractor covers a 27-month construction period from the date of commencement and include... Monday, 21 May 2018 07:14

POGO rules hurt LRWC 1Q18 results but casino division strong

POGO rules hurt LRWC 1Q18 results but casino division strong Leisure & Resorts World Corporation (LRWC) – the Philippines gaming company looking to partner with Galaxy Entertainment Group in developing an integrated resort in Boracay – saw its revenue fall slightly by 2% to Php3.86 billion (US$74 million) in 1Q18, its online operations taking a hit fr... Monday, 21 May 2018 07:00

VIDEO: G2E Asia 2018 highlights

VIDEO: G2E Asia 2018 highlights Inside Asian Gaming takes a visual look back at G2E Asia 2018 . Monday, 21 May 2018 06:44

Aquis granted Canberra extension as Justin Fong quits

Aquis granted Canberra extension as Justin Fong quits Australian-listed Aquis Entertainment has been granted an extension by the ACT government to the original 14 May deadline to submit a revised proposal for its planned multi-million dollar expansion of Casino Canberra. But the company will have to complete any such proposal without one of its key di... Saturday, 19 May 2018 18:49

Current Issue

Macau and Japan: Licensing looms large

Macau and Japan: Licensing looms large The next few years are set to be the most crucial period ever in the Asian gaming industry – one which will lay the ground rules for decades to come in the world’s largest gaming market and what’s set to become the world’s second largest. By Ben Blaschke and Andrew W Scott Macau and Japan ... Monday, 30 April 2018 12:39

Pachinko: Japan's Unlucky Loser

Pachinko: Japan's Unlucky Loser Japan’s preparations for integrated resorts are hitting pachinko harder than the actual casinos ever will. By Muhammad Cohen Japan won’t open its first integrated resort for years, if ever, but the IRs already have their first loser, the country’s unique and ubiquitous pachinko business. Pac... Monday, 30 April 2018 12:33

Responsible Gaming in Japan: Bill to be key to Japan’s Gaming Market

Responsible Gaming in Japan: Bill to be key to Japan’s Gaming Market Global Market Advisors’ Brendan D Bussman runs through the pros and cons of Japan’s problem gambling legislation. By Brendan D Bussmann As Japan continues to look at the development of integrated resorts (IR), many people engaged and following the market are focused on the IR Implementation Bi... Monday, 30 April 2018 12:28

Safety First

Safety First The International Association of Gaming Advisors (IAGA) will hold its 37th annual International Gaming Summit during G2E Asia from 14 to 16 May at Four Seasons Macao. Among the many insightful seminars and events that will comprise IAGA’s summit is a responsible gaming workshop to be held on Wedne... Monday, 30 April 2018 12:12