Scientific Games targets further success after substantial quarterly growth

Scientific Games targets further success after substantial quarterly growth

Monday, November 3, 2014 Totally Gaming

Gavin Isaacs, president and chief executive officer of Scientific Games, has insisted that after having achieved substantial growth during the three months through to September 30, the gaming solutions provider will target further success in the fourth quarter and beyond.

The firm posted revenue of $415.6m (€332.6m) in the third quarter, which represents a massive increase on the $234.4m achieved in the same period last year.

Isaacs attributed this substantial growth to the contribution of operations from WMS Industries, the slot machine provider acquired by Scientific Games last year, as well as a nine-per-cent increase in overall lottery revenue.

In addition to revenue, attributable earnings before interest, tax, depreciation and amortisation (EBITDA) increased from $89.9m in the third quarter of 2013 to $128.2m this year.

However, the firm did report an increase in net loss, which grew from just $400,000 last year to $69.8m in the latest quarter. Scientific Games said that this was down to a non-cash impairment charge to write down an equity investment in its Northstar Illinois joint venture, in addition to financing-related costs associated with the pending acquisition of Bally Technologies.

Despite this loss, revenue for the first nine months of 2014 amounted to $1.2bn, which is almost double the $689m that the firm posted at the same point last year.

Attributable EBITDA for the first three quarters of the year also grew to $383.1m, but net loss increased from $26.7m last year to $187.2m this year.

“While our operating results still require further improvement to achieve the level of performance we expect, we believe we are making solid progress in utilisation of working capital, implementation of WMS-related integration initiatives, strengthening the organisation-wide focus on disciplined cost management and directing capital allocation only toward our highest-return opportunities,” Isaacs said.

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