Scientific Game

Scientific Games announces improved third quarter results

Friday, 03 November 2017 04:07
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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.”

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