Debt-focused Scientific Games posts strong 2019 opening

Publishing its Q1 2019 trading statement (period ending 31 March), Nasdaq-listed Scientific Games Corporation (SGC), details confidence in its corporate prospects as governance moves to reduce company debt.

Q1 2019 revenues rose by 3% to $837 million (Q12018: $812m), driven by the growth of SGC’s social (+22%) and lotteries (+5%) divisions.

SGC maintains its positive revenue momentum, despite the company recording a flat Gaming Systems performance ‘reflecting fewer major site installations’ than during the prior year.

Solid revenue growth would see the Nasdaq enterprise post a period adjusted EBITDA of $328 million from (Q12018: $320m), as SGC governance declares Net Cash generated from operations of $167 million (Q12018: $30m).

Closing Q1 2019 trading, SGC narrows group losses to $24 million, significantly lower to the $202 million figure posted in the prior year – as SGC absorbed refinancing costs of $93 million.

Detailed as a key corporate directive, SGC highlights that the company paid $145 million of debt during the period as the technology group ‘accelerates its Path to de-leveraging’.

Supporting its debt initiatives this May, SGC completed its IPO of social gaming division SciPlay on the US Nasdaq exchange – with the group securing + $300 million in proceeds, which will be used on substantial debt repayments.

Barry Cottle, President and Chief Executive Officer of Scientific Games, said: “We are incredibly proud that we have continued to build on our momentum and are looking forward to the year ahead. We are focused on effectively operating our businesses, reducing costs and building upon the strong foundation for profitable growth that we see today.

“Last week, we successfully took SciPlay public as a new company, which accelerates our ability to pay down debt. All of these actions support our steadfast commitment to smartly grow our business, drive free cash flow and create meaningful value for our stakeholders.”

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