Nasdaq-listed Scientific Games Corporation has stated that integration initiatives and cost focused synergies implemented in 2015 have helped the company record an income boost of $50 million up 178% on Q1 2015’s $18 million.
Updating the market on its Q1 2016 performance (period ending 31 March), Scientific Games reported growth on revenue and earnings ‘metrics, despite being impacted by unfavourable currency exchange fluctuations.
The gambling technology firm would report a 4% group revenue uplift to $682 million (Q1 2015: $659 million) driven by growth in its interactive gaming division.
Revenue growth for Q1 2016 would transfer to increased group earnings, as Scientific Games recorded an attributable EBITDA of $259 million, up from $252 million in Q1 2015.
At present Scientific Games bears a corporate debt of $8.1 billion, following its leverage acquisition of slot manufacturer Bally Technologies in 2014. Closing its 2016 opening quarter, Scientific Games recorded net losses of $92 million.
Scientific Games governance would detail that it had increased free cash-flow to $42 million, with the company being able to pay $28 million in debt repayments during the period.
As of March 31, 2016, the Company’s cash and availability under its revolving credit facility increased to $605 million.
Gavin Isaacs, President and CEO of Scientific Games.
“Our focus on strategic priorities – product excellence, profitable growth, and strengthening cash flow – is taking hold, as we have generated positive growth for the past two consecutive quarters. We are building momentum and delivering improved business results, clear evidence of the strength of our comprehensive product portfolio. As we move forward, we are committed to continuous improvement to unlock the power of our brands, leverage our unrivaled innovation and serve our customers to provide meaningful, long-term shareholder value,”
Michael Quartieri, Scientific Games’ Executive Vice President and CFO, added, “Across our global operations, our focus is on fiscal discipline, seeking further process improvements and operating efficiencies, as we continue to prudently invest to sustain our leadership in innovation. By driving profitable growth and increased conversion of AEBITDA into cash flow, we expect to remain on a path to further deleverage in 2016 and beyond.”