Scientific Games posts its results for the third quarter, showing social gaming up by 81 percent and a 22 percent spike in machine sales.
[dropcap]R[/dropcap]evenues at Scientific Games hit $720m in last three months, driven by huge gains in social gaming and a 22 percent in gaming machine sale.
All in, the corporation posted a seven percent increase in revenues, or $48.4m more than its third quarter results in 2015. Social gaming growth reached 81 percent, and operating income hit $33.5m in the period, a vast improvement on the equivalent period’s loss of $988.2m last year.
“Scientific Games is focused on building momentum,” Kevin Sheehan, CEO and President, said. “The dedicated efforts of our employees combined with the benefits that our products and technology solutions deliver to our gaming, lottery and interactive customers and players led to year-over-year increases in revenue, AEBITDA and free cash flow.
Net loss was $98.9m – compared to a net loss of $1,078m in the prior-year period – and net cash from operating activities increased 7 percent to $150m. Free cash flow increased 57 percent to $61.1m from $38.8m in the year-ago quarter.
Sheehan added that looking forward he hopes to transform the way SG operates by “creating a simpler, more efficient and nimble organization with a laser focus on our core businesses.” He explained the company’s priorities would be to drive further innovation to create “new, differentiated products”; to focus on “prudent fiscal management” to improve financial returns, and free cash flow to accelerate deleveraging; and build a corporate culture “open to new ideas and opportunities.”
Michael Quartieri, executive VP and CFO, added: “We are increasing our concentration on disciplined cost management with process improvement and lean initiatives across our global businesses. Yesterday, we embarked on a business improvement initiative to manage our expenses more efficiently, which we expect will reduce our annualized cost structure by $75m.
The company expects this to implemented by the end of 2016 at a cost of approximately $20m. “By strengthening our competencies and investing prudently in our core businesses, we are further positioning Scientific Games to deliver on our priorities,” Quartieri added.