Scientific Games records 24% increase in unit shipments for Q1 2017

ng giant Scientific Games has released its Q1 financial results, highlighting a 6% increase in first quarter revenue over 2016 to $725.4m. The growth was led by a 24% increase in global new unit shipments of gaming machines and a 33% increase in interactive revenue.

Operating income in the first quarter increased 75% to $88.0 million as a result of revenue growth and a lower cost structure, according to the report. Net loss was $100.8m compared with $92.3 million in the prior-year period, as the increase in operating income was offset by a $29.7m loss on extinguishment and modification of debt and a $35.9m increase in the income tax provision.

There was a surprising 42% increase in average daily revenue per online user for the company’s social gaming offering, this coming despite a slight fall in online users.

Attributable EBITDA increased to $286.6m from $258.8m a year ago driven by the higher revenue and lower cost structure, while net cash from operating activities rose to $111.0m.

The company completed a series of refinancing transactions during the first quarter 2017 that lowered cash interest costs, reduced exposure to variable interest rates, and extended a substantial portion of its debt maturities.

"Our continued steady improvement in revenue and margin are a direct result of our focus on creating innovative products that drive demand and our commitment to operational excellence," said Kevin Sheehan, Chief Executive Officer of Scientific Games. "This is a great start to the year, with all three of our business segments contributing to growth. We have a tremendous global team firmly focused on unlocking the power of our brands, strengthening our commitment to innovation, and executing a disciplined fiscal approach to enhance long-term shareholder value. We are building for our future."