Robust gaming, lottery, and interactive segments of Nasdaq-listed Scientific Games Corporation help narrow the company’s losses in the third quarter of 2017.
In a disclosure to the U.S. bourse, Scientific Games reported that the firm’s net loss dropped to $59.3 million from $98.9 million in the same period last year.
Scientific Games attributed the improving net loss figures to its positive operating income, which jumped 170 percent to $90.6 million. Foreign exchange, according to Scientific Games, also helped mitigate the net loss.
Its net debt ratio also declined to 6.7 times trailing twelve-month attributable earnings before interest, taxes, depreciation, and amortization (EBITDA) from 7.4 times in 2016. Scientific Games’ attributable EBITDA increased 10 percent to $299.0 million.
The firm’s total net debt stood at US$7.98 billion by the end of September.
“Our improved performance is enabling us to strengthen our balance sheet and lower our cost of capital. During the third quarter, we successfully extended our term loan maturity until August 2024 and reduced the term loan interest rate by 75 basis points,” Michael Quartieri, Chief Financial Officer of Scientific Games, said in a statement. “We remain committed to our path of deleveraging, while capitalizing on meaningful opportunities to grow our business.”
Meanwhile, Scientific Games’ revenue grew 7 percent to $768.9 million thanks to increases in each of the Gaming, Lottery and Interactive segments.
The gaming arm of Scientific Games – which includes gaming operations, gaming machine sales, gaming systems, and table products – grew 1.4 percent to $454.6 million.
Its lottery business saw an 8.7 percent year-on-year increase while its interactive segment rose by 30.8 percent year-on-year. Data showed that Scientific Games earned $202.9 million and $111.4 million from its lottery and interactive segments in the third quarter, respectively.
“We are growing our businesses, expanding our product portfolio, improving our processes, enhancing our operating margin, paying down debt, and delivering positive results,” said Kevin Sheehan, Chief Executive Officer of Scientific Games.
