Scientific Games losses narrow following NYX integration

Scientific Games revenues increased 10% year-on-year during the second quarter of 2018, with the company reporting growth across its four core businesses.

In its quarterly report, the business revealed revenues of $844.7m, including the additional $50.6m revenue brought in by the acquisition of NYX Gaming, which completed in January.

Net losses decreased dramatically from $39.1m in Q2 2017 to $5.8m, primarily driven by what the company called “higher revenue and more efficient business processes throughout the organisation”.

Barry Cottle, CEO and president of Scientific Games, said: “[I am] very pleased with our accomplishments this quarter and particularly proud that all four businesses continued to experience growth this quarter and are accelerating our financial momentum.”

In terms of individual businesses, total revenues from digital operations increased by over 389% year-on-year to $67.2m (£51.3m) from a Q2 2017 figure of $15.2m, reflecting the influx of revenues from NYX gaming.

Gaming technology revenues also increased by 3% year-on-year to $470.7m (£359.4m) during Q2 2018.

Revenues from social gaming increased by 9% year-on-year to $99.7m in the second quarter of 2018, from $91.1m in Q2 2017.

Total lottery revenues increased by a modest 2% year-on-year, rising to $207.1m during Q2 2018 from a previous high of $202.3m in the second quarter of 2017.

Cottle added: “Our core businesses are strong and ready to capitalize on the significant opportunities in the marketplace to drive growth by delivering great games and robust platforms and systems that enable them.

“We remain focused on delivering results, maintaining our financial discipline and strategically investing in our future to maximize shareholder return.”

Consolidated attributable EBITDA rose by 8% year-on-year to $340.4m (£260.2m) during the quarter from a previous Q2 2017 high of $314.8m (£240.6m), with a consolidated AEBITDA margin of 40.3%.

Following the refinancing exercise undertaken by the business in February and the timing of subsequent interest payments, net cash provided by operating activities decreased by 39% year-on-year to $102.5m (£78.6m) from a Q2 2017 figure of $168.5m ($128.8m).

Michael Quartieri, chief financial officer of Scientific Games, added: “This quarter marks our eleventh consecutive quarter of year over year growth in revenue and AEBITDA. We have clear momentum across all of our global businesses.

“The improvement in our operating results, along with lower interest costs, provides us with a clear path of increasing cash flows, deleveraging, and strengthening our balance sheet.”