Scientific Games saw its revenue rise 7% in 3Q18 to US$821 million, up from US$768.9 million, boosted by a US$46.5 million injection from sports betting business NYX and growth in its lottery and social gaming segments.
Despite the increase, net loss rose from US$59.3 million to US$351.6 million due to “restructuring and other charges” including US$309.6 million from a legal fight over its Shuffle Tech card shuffler. Consolidated Attributable EBITDA grew 9% to US$325.7 million.
“We are very pleased with the growth we are seeing across our businesses as we continue to lead our industry into the future,” said new CEO and President Barry Cottle, who took over the top job in May.
“Our investments in digital, sports betting, and new games are producing the most innovative and engaging products in the market and we are excited about the customer response here in the US and around the world.”
By segment, Scientific Games saw gaming revenue fall 1% to US$447.9 million due to a decline in gaming operations, although gaming machine sales – up 3% to US$167.2 million – and gaming systems booked increases.
Total lottery revenue for the quarter grew 2% to US$206.8 million, while NYX helped digital soar from US$16.3 million in the same period last year to US$61.2 million.
In the social space, revenue grew 11% to US$105.1 million following the launch of new apps recently.
Scientific Games also announced that it is considering a possible initial public offering of a minority interest in its social gaming business in 2019.
“For our rapidly growing social business, an IPO would give us greater flexibility to pursue growth for the business and drive value for stakeholders,” said Cottle. “We remain focused on delivering for our customers and running our business efficiently and effectively to drive revenue, reduce costs and continue to build momentum across the company.”
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