Scientific Games hails divisional growth as revenue rises in Q3

Scientific Games has cited the impact of year-on-year growth within its gaming, lottery and interactive segments as the main reasons behind an overall increase in revenue during the three months to September 30.

Revenue in the third quarter amounted to $768.9m (€659.6m), which is up 7% on the $720m posted in the corresponding period last year.

Operating income in the three-month period rocketed 170% year-on-year from $33.5m to $90.6m, while net loss was cut from $98.9m to $59.3m.

Attributable earnings before interest, tax, depreciation and amortisation (AEBITDA) was also up 10% from $271.6m to $299m, with Scientific Games putting this down to higher revenue, a more profitable revenue mix and more effective business processes.

However, the company did note that net cash provided by operating activities dropped $41.4m to $109.5m, mainly due to unfavourable change in working capital accounts of $107.1m

In addition, during the quarter, Scientific Games completed a refinancing of its $3.283bn of existing term loans that lowered the applicable interest rate by 75 basis points and extended maturity to 2024.

Kevin Sheehan, chief executive of Scientific Games, said: “We are growing our businesses, expanding our product portfolio, improving our processes, enhancing our operating margin, paying down debt, and delivering positive results.”

Michael Quartieri, chief financial officer of Scientific Games, added: “Our improved performance is enabling us to strengthen our balance sheet and lower our cost of capital.

“We remain committed to our path of deleveraging, while capitalising on meaningful opportunities to grow our business.”

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