Scientific Games Corporation has reported revenue of US$766.3 million in the three months to 30 June, up 5% over the same period last year on the back of a strong performance from its gaming sector.
Total gaming revenue for 2Q17 increased 3% to US$15.3 million despite a US$4.9 million unfavorable foreign exchange impact, while operating income for the sector more than doubled from US$39.2 million to US$85.9 million.
Gaming operations fell 4% to US$7.6 million but revenue from gaming machine sales, gaming systems and table products rose across the board by 6%, 13% and 15% respectively.
Attributable EBITDA for the sector increased to $226.9 million with an AEBITDA margin of 49.6 percent, reflecting the higher revenue and more profitable business mix compared to the prior year.
Company wide, Scientific Games saw its operating income jump from US$59.1 million to US$117.3 million year-on-year, while net loss decreased from US$51.7 million to US$39.1 million due to increased operating income and lower interest expenses.
Attributable EBITDA increased 13% to US$314.8 million.
“Second quarter results represent our seventh quarter of consecutive year-over-year growth, including US$169 million of cash flow from operating activities as a result of ongoing improvements in our gaming, lottery and interactive operations,” said Scientific Games CEO Kevin Sheehan.
“We achieved year-over-year revenue growth in global gaming machine sales, gaming systems, table products and interactive; as well as in US instant games revenue. In addition, as a result of our improving organizational structure, we increased our AEBITDA margin by 270 basis points.
“Across the company, we are maintaining a laser focus on executing our strategies and capitalizing on our many opportunities.”
The company said it plans to take advantage of favorable market conditions to refinance a portion of its debt to lower cash interest costs, extend debt maturities and generally lower its cost of capital.
RelatedPosts
