Machine and software manufacturer Scientific Games continues its return to growth with a six percent lift in revenues for the first quarter of 2017 – its sixth consecutive three-month period of positive figures.
A 24 percent increase in shipments of gaming machines, as well as a 33 percent rise in interactive revenue, helped push sales up to $725m, a leap up from the $682m posted a year ago.
“Our continued steady improvement in revenue and margin are a direct result of our focus on creating innovative products that drive demand and our commitment to operational excellence,” said Scientific Games CEO Kevin Sheehan. “This is a great start to the year, with all three of our business segments contributing to growth. We have a tremendous global team firmly focused on unlocking the power of our brands, strengthening our commitment to innovation, and executing a disciplined fiscal approach to enhance long-term shareholder value. We are building for our future.”
Overall operating income was improved by 75 percent to $88m due in part to a lower cost structure. The UK performance didn’t help the balance of figures however, with fewer gaming machines installed in British betting shops, operating income from machines fell seven percent in the three month period – worsened again by an unfavourable Brexit-induced exchange rate.
Net loss was also up – £8m more than last year at £100m – mainly due to $30m spent on the “extinguishment and modification of debt” and increases to income tax.
By the end of the quarter, the company had fully repaid borrowings under its revolving credit facility, with an available cash-pile now sitting at $657m.
“All across our global businesses, we are improving our operational excellence that parlays our strength in innovation to drive enhanced financial results and stronger cash flow,” said CFO of Scientific Games, Michael Quartieri. “We expect these initiatives will drive profitable growth and increased cash flow that will provide further opportunities to deleverage in 2017 and beyond.”