Scientific Games absorbs Q1 restructuring costs for Digital future

Kevin Sheehan

Further to announcing its corporate leadership change, Scientific Games Corporation (SGC) has today published its Q1 2018 trading update (period ending 31 March), detailing a number of financial restructuring adjustments.

The Nasdaq-listed technology group reported a 12% increase in group revenues to $811 million (Q1 2017: $725 million), supported by revenue growth recorded across its core divisions – SG Gaming (+1), SG Interactive (+7%), SG Social (+21%).

Closing a busy Q1 trading period, in which SGC governance completed its $630 million acquisition of NYX Gaming Group, launching its new SG Digital division, the Nasdaq firm would incur a number of corporate restructuring charges.

SGC would declare a Q1 2018 operating income of $49 million (Q1 2017: $88 million) with the company absorbing $52.2 million in period operational costs.

Amongst the M&A costs carried by SGC during the period, were a $15 million litigation charge, combined with an initial $13 million of NYX integration costs.

Closing its Q1 2018 performance, SGC governance declares a net loss increase to – $201 million (Q1 2017: – $100 million), with the company absorbing circa $92 million in debt-related charges, having refinanced its corporate debt facility in February.

Updating the market, outgoing Scientific Games President & Group CEO Kevin Sheehan commented on corporate performance;  “Our first quarter results reflect our strength as a global diversified gaming technology provider,”

“Our results reflect the significant success our team achieved during the quarter such as the inclusion of NYX and our refinancing, as well as the underlying robust business fundamentals, such as the 30 percent increase in gaming machine replacement sales. With improving momentum across all our businesses, we are excited by the prospects and opportunities to smartly grow our revenue and AEBITDA during the remainder of 2018 and beyond.”

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