SBC News Rich revenue mix helps Scientific Games narrow Q3 2017 losses

Rich revenue mix helps Scientific Games narrow Q3 2017 losses

SBC News Rich revenue mix helps Scientific Games narrow Q3 2017 losses
 Kevin Sheehan

Nasdaq-listed gambling technology supplier Scientific Games Corporation (SGC) has reported a strong Q3 2017 trading update (period ending 30 September), recording growth across all its core divisions (gaming, lottery and interactive).

Updating the market, SGC governance would declare period group revenues of $769 million, representing a 7% increase on corresponding 2016’s $720 million.

The firm states that it currently operating a deeper ‘revenue channel-mix’, which has helped deliver a 10% period ‘attributable EBITDA’ of $299 million (Q3 2-16: $272 million).

SGC’s strong revenue and earnings momentum have helped the company improve its profit balance sheet, whilst lowering its cost capital. The company would declare a 170% increase in period operating income of $91 million (Q3 2016: $33.5 million).

Posting strong metric gains, SGC was able to reduce period corporate losses to $59 million from $99 million recorded in the prior-year.

Entering the final quarter of 2017, SGC governance will move to close its pending $630 million acquisition of Toronto TSX-listed online gambling systems supplier NYX Gaming Group, for which it has extended a $350 million revolving credit facility.

“This quarter each business segment achieved revenue and AEBITDA growth, we showcased industry-altering innovation at NASPL and G2E, we were named ‘Industry Land-Based Supplier of the Year’ and announced our intent to acquire NYX, the industry leader in digital real-money gaming and sports betting. We are excited by the acquisition of NYX and the opportunities to grow our digital business,” said Kevin Sheehan, Chief Executive Officer of Scientific Games.

“We are growing our businesses, expanding our product portfolio, improving our processes, enhancing our operating margin, paying down debt, and delivering positive results.”

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