Global gaming giant Scientific Games Corp saw its revenue hold steady at US$845 million for the three months to 30 June 2019, but the company’s loss for the period widened considerably due to debt financing costs related to a notes offering.
While Scientific Games saw growth in its Lottery, SciPlay and Digital divisions, revenue was down in Gaming due to fewer casino openings and systems launches than in 2Q18, the company said. As a result, Adjusted EBITDA declined 1% to US$335 million.
By segment, Gaming revenue declined 9% to US$427 million including a US$20 million fall in gaming machine sales to US$148 million and a similar fall in gaming systems from US$84 million to US$67 million. Those declines were primarily US-based with international new unit shipments increasing 9.6% to 2,730.
Lottery revenue grew 12% to US$231 million, SciPlay by 18% to US$118 million and Digital by 3% to US$69 million.
The quarter saw Scientific Games complete its IPO of an 18% minority interest in its social gaming business, SciPlay Corporation, with CFO Michael Quartieri stating, “This quarter we paid down another US$155 million in debt, bringing our year to date total to US$300 million, and the SciPlay IPO proceeds will continue to enable us to make substantial payments on our debt as we work toward our deleveraging goal.”
President and CEO Barry Cottle added, “The second quarter really highlights the diversity of our business and the many avenues we have to generate revenue across the globe. The entire organization is laser focused on strengthening our core business and capturing market share in emerging digital markets while making our business more efficient. These key focus areas will allow us to deliver the greatest returns for our stakeholders, set ourselves up for profitable growth, and generate significant cash flow to continue on our deleveraging path.”
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