Scientific Games Corporation has published its Q2 financials, with the firm reporting steady revenue, holding at $845m against a widening loss of $75m due to debt refinancing. While the company noted growth in its Lottery, SciPlay and Digital divisions, revenue decreased in gaming as a result of a fall in the number of casino openings and systems launches year-on-year.
Second quarter revenue of $845m was, said SG, consistent with the prior year period. The net loss of $75m compared to $6m year-on-year was primarily driven by a $60m debt financing expense related to the successful notes offering that lowered cash interest costs and extended debt maturities.
This quarter also included a $3m loss on remeasurement of Euro denominated debt versus a $34m gain in the prior year period. Consolidated adjusted EBITDA decreased 1% to $335m from $340m in the prior year period. Net cash provided by operating activities was $95m compared to $102m year-on-year.
Barry Cottle, President and CEO, commented: “We are pleased with the growth we are continuing to see across Lottery, Digital, and SciPlay while also stabilizing gaming operations driven by the successful launches of several new games. The second quarter really highlights the diversity of our business and the many avenues we have to generate revenue across the globe.”
He continued: “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.”
Michael Quartieri, Chief Financial Officer, added: “This quarter, we paid down another $155m in debt bringing our year to date total to $300m, and the SciPlay IPO proceeds will continue to enable us to make substantial payments on our debt as we work toward our deleveraging goal.”
In summary, the firm advised that revenue from US and Canada gaming operations was flat sequentially driven by a $0.52 increase in average daily revenues from the prior quarter, while the installed base decreased by 902 units from the removal of older machines and the closure of a racino in the Northeast.
Total gaming operations revenues decreased by $2m sequentially as international operations revenue was slightly impacted, as anticipated, by the implementation of the law change in the UK in April affecting FOBTs limiting them to a £2 maximum bet.
