US – Scientific close to doubling second quarter revenueBy Phil - 6 August 2014
The inclusion of revenues from WMS Gaming has seen Scientific Games’ second quarter revenue increase to US$416.9m from $235m in the prior-year quarter. The pending purchase of Bally Technologies should turn into one of the gaming industry’s powerhouses.
Gavin Isaacs, President and Chief Executive Officer, said: “Our second quarter revenue of $416.9m reflected contributions from the WMS acquisition, which substantially expanded our gaming business, and a seven year-over-year increase in lottery revenue. 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, which contributed to a $9.3m sequential quarterly increase in attributable EBITDA. While we have made significant progress across our worldwide organization with our integration efforts, we believe there are additional opportunities to grow our business and further strengthen performance.
Attributable EBITDA increased$47.6m from the prior-year quarter to $132.1m. The company incurred a net loss of $72.4m, or $0.86 per share, inclusive of a $0.31 per share loss on the early extinguishment of debt, $0.09 per share related to the company’s share of an estimated net shortfall accrual recorded by its Northstar Illinois joint venture, and $0.06 per share in employee termination and restructuring expense. This compares to a net loss from continuing operations of $12.4m, or $0.14 per share, in the prior-year quarter, which included $0.03 per share related to acquisition-related and transition costs and an $0.08 per share impact related to a write-down and accelerated depreciation resulting from a change to reduce the depreciable life of our UK gaming terminals.
“Our pending acquisition of Bally Technologies, which we announced last week, presents a unique opportunity to combine two exceptional companies with long track records of delivering leading-edge games, gaming technology products and systems to their customers,” Mr. Isaacs continued. “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. We believe the combination will provide opportunities to cross-utilize 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. I look forward to meeting with our gaming and lottery customers and sharing our vision for how the combined company expects to provide new value for them through our creation of innovative games and value-added services that can help them engage their players and grow their revenues.”