Gaming, Lottery and Interactive businesses bump Scientific Games Q3 results
Worldwide gaming giant Scientific Games Corporation has this week posted third quarter revenue of $768.9m, rising almost 7% year-on-year basis.
The product and services supplier attributed the positive results to an overall increase in each of the Gaming, Lottery and Interactive segments; whilst foreign exchange had a $2.1m favourable impact on revenue during the three-month period.
In its third financial filing of the year, Scientific Games highlighted net loss reduced to $59m from the previous $98m recorded in the same period last year. This drop can be attributed to the improvement in operating income, which drastically jumped 170% to $90m from the $33m generated in the third quarter 2016.
The Nasdaq-listed firm said that such an increase reflected ““revenue growth, a more profitable revenue mix, more effective business processes and lower depreciation and amortisation.”
Attributable earnings before interest taxation depreciation and amortisation increased 10% to $299m from the $271.6 million reported a year ago, primarily driven by higher revenue, a more profitable revenue mix and more effective business processes. Moreover, Scientific Games has 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.
However, despite a financially strong Q3, Scientific Games reported a decline in net cash provided by operating activities, decreasing $41m to $109m posted same period prior year. The company said this drop was mainly driven by an unfavourable change in working capital accounts of $107m.
Following the update, Kevin Sheehan, Chief Executive Officer of Scientific Games, commented: “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’ Chief Financial Officer Michael Quartieri added: “At quarter-end, our net debt leverage ratio decreased to 6.7 times trailing 12-month AEBITDA, down from 7.4 times a year ago. We remain committed to our path of deleveraging, while capitalising on meaningful opportunities to grow our business.
“Our improved performance is enabling us to strengthen our balance sheet and lower our cost of capital.”
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