GGRAsia – Scientific Games posts 78-pct jump in 2Q revenue

Scientific Games posts 78-pct jump in 2Q revenue

Aug 06, 2014 Newsdesk Industry Talk, Latest News, Top of the deck

Gaming and lottery supplier Scientific Games Corp recorded a jump of 77.4 percent in revenue for the second quarter of 2014, to US$416.9 million.

The Nasdaq-listed company still incurred a net loss of US$72.4 million, or US$0.86 per share, it said in a statement released on Tuesday. That compared to a net loss of US$12.4 million, or US$0.14 per share, in the prior-year quarter.

“Our second quarter revenue of US$416.9 million reflected contributions from the WMS acquisition, which substantially expanded our gaming business, and a 7 percent year-over-year increase in lottery revenue,” Scientific Games president and chief executive Gavin Isaacs said in a statement.

Scientific Games acquired U.S.-based slot machine maker WMS Industries Inc in 2013. The move allowed the company, initially a specialist in lottery equipment and management, to enter the slot machine segment.

“Although our second quarter results continued to reflect challenging gaming industry conditions, we saw sequential quarterly revenue growth across our businesses and benefits from our ongoing integration initiatives,” Mr Isaacs added.

Scientific Games announced last week a deal to acquire gaming equipment supplier Bally Technologies Inc in a deal valued at US$5.1 billion.

“The transaction would significantly expand Scientific Games’ portfolio to include leading casino management systems and table products, including automatic shufflers, proprietary table games and electronic table systems, and should drive further expansion of Scientific Games’ social and real-money interactive businesses,” Mr Isaacs said.

He added: “We believe the combination will provide opportunities to cross-utilise the companies’ content and technology across lottery, gaming and interactive distribution channels and platforms, further diversify our revenue streams, and increase our cash flows allowing us to meaningfully reduce our leverage.”