Global gaming developer Scientific Games says it is intent on continuing to pay down debt after posting strong 1Q19 financial results, including 3% increases in both revenue and Consolidated Adjusted EBITDA to US$837 million and US$328 million respectively, and significantly reduced loss.
The quarterly results come just a day after the company’s social gaming arm, SciPlay, completed its IPO of a 17.4% minority interest, raising US$301 million in the process.
“We are incredibly proud that we have continued to build on our momentum and are looking forward to the year ahead,” said President and CEO Barry Cottle after Scientific Games paid down US$145 million of debt in the quarter.
“We are focused on effectively operating our businesses, reducing costs and building upon the strong foundation for profitable growth that we see today. Last week, we successfully took SciPlay public as a new company, which accelerates our ability to pay down debt.
“All of these actions support our steadfast commitment to smartly grow our business, drive free cash flow and create meaningful value for our stakeholders.”
The company’s Lottery and Social segments enjoyed year-on-year revenue increases of 12% and 22% respectively, while Gaming fell slightly to US$422 million despite increases in daily revenue per unit and the installed base of its international operations.
Net loss in 1Q19 fell from US$202 million to US$24 million, driven by higher operating income which was partly attributable to a $45 million reduction in restructuring and other expenses, Scientific Games said.