Las Vegas-based Scientific Games has initiated a $75 million cost-cutting programme to reverse its losses, and focus on driving the company back to its core business.
Kevin Sheehan, Chief Executive and President, said: “To position Scientific Games for long-term growth, we are prioritizing our business strategies, streamlining and consolidating our processes and creating a more efficient, seamless organisation.”
Sheehan, who did not specify whether the company’s Las Vegas workforce would be affected, continued: “This initiative has resulted in reduced operational costs and the elimination of positions. We appreciate the efforts of those who are leaving Scientific Games and thank them for their contributions.”
This comes despite Scientific Games reporting a revenue rise during the three months up to September 30, attributed to growth within its social gaming division. Revenue amounted to $720 million (£648.6 million) in the third quarter, a 7% increase on the corresponding period last year. The company’s social gaming business experienced a revenue increase of 81% in the quarter.
Despite the improvements, the company still reported a net loss of $98.9 million, although this was compared with a net loss of $1.1 billion from the previous year. EBITDA was also up by 3% to $271.6 million, and net cash from operating activities rose 7% to $150.9 million, while Scientific Games was also able to pay down a total of $42.4 million of debt in the quarter.
Sheehan said: “Scientific Games is focused on building momentum; 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.”
“As we look forward, it is time to transform the way we operate by creating a simpler, more efficient and nimble organisation with a laser focus on our core businesses.
“Our priorities are to drive further innovation to create new, differentiated products for our customers that power growth; 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 that help to accelerate our progress.”