Scientific Games’ Q3 results show company is heading in the right direction
Scientific Games has reported a year-on-year revenue increase of 7%, or $48.4m, to $720m, in its Q3 2016 financial report. Revenue growth included an 81% increase in social gaming and a 22% increase in gaming machine sales.
Despite a net loss at $98.9m, this was an improvement on the prior year period, showing a net loss of $1,078.2m. Operating Income was $33.5m compared to a loss of $988.2 last year, which included a $935m goodwill impairment charge and $103.6m of impairment charges for certain intangible assets.
Attributable EBITDA was $271.6m, a 3% increase over the prior-year period, primarily reflecting higher revenue, partially offset by a less profitable mix of revenue, as well as higher marketing and product development-related expense in Interactive relating to the anticipated launch of future new social gaming apps.
CEO and President of Scientific Games, Kevin Sheehan says: “Scientific Games is focused on building momentum. 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 business.
Executive Vice President and Chief Financial Officer, Michael Quartieri adds: “We are increasing our concentration on disciplined cost management with process improvement and lean initiatives across our global business.
“We anticipate the initiative to be largely implemented by the end of 2016 at a cost of approximately $20m. By strengthening our competencies and investing prudently in our core business, we are further positioning Scientific Games to deliver on our priorities.”
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