Scientific Games reports positive revenue momentum despite accounting restructure

A new look Scientific Games Corporation (SGC) announces its second quarter 2018 results, reporting revenue growth across its core divisions of gaming, lottery and digital services.

Updating the market on Q2 2018 trading (period ending 30 June), SGC reports a 10% uplift in group revenues to $845 million (Q2 2017: $766 million).

The Nasdaq-listed enterprise maintains its period revenue growth, despite implementing a new ‘revenue recognition accounting’ model which impacted the growth of its gaming ($470 million) and lottery ($207 million) verticals.

SGC governance reports that new digital gaming/betting asset NYX recorded $51 million in period revenues.

Combining the firm’s expanded revenue channels with a number of new group efficiencies, SGC governance announces an adjusted EBITDA increase of 8% to $340 million (Q2 2017: $315 million).

Closing Q2 2018 trading, a debt restructured SGC reduces its period losses to $5.8 million, compared to 2017’s comparative -$40 million, as the firm takes advantage of its Euro-debt facility.

Presenting his first financial update as Scientific Games Corporation CEO & President, Barry Cottle commented on corporate performance:

“I’m very pleased with our accomplishments this quarter and particularly proud that all four businesses continued to experience growth this quarter and are accelerating our financial momentum.

Our core businesses are strong and ready to capitalize on the significant opportunities in the marketplace to drive growth by delivering great games and robust platforms and systems that enable them. We remain focused on delivering results, maintaining our financial discipline and strategically investing in our future to maximize shareholder return.”

Updating stakeholders on its active cash holdings, the Nasdaq enterprise details that its current ‘operating activities’ have decreased to $103 million from $169 million, as result interest payments taken from its February 2018 refinancing scheme.

Michael Quartieri, Chief Financial Officer of Scientific Games, added, “This quarter marks our eleventh consecutive quarter of year over year growth in revenue and AEBITDA. We have clear momentum across all of our global businesses. The improvement in our operating results, along with lower interest costs, provides us with a clear path of increasing cash flows, deleveraging, and strengthening our balance sheet.”