Scientific Games, the global gaming product and services provider, saw its first quarter revenues rise 6% year-on-year to US$725.4 million, led by a 24% increase in global new unit shipments of gaming machines and a 33% increase in interactive revenue.
In its 1Q17 earnings statement released overnight, the company reported its Attributable EBITDA increased to US$286.6 million from US$258.8 million a year ago, driven by the higher revenue and lower cost structure, with its AEBITDA margin improving to 39.5% from 37.9% in the prior-year period.
Operating income in the first quarter increased 75% to US$88 million from US$50.3 million a year ago, however net loss climbed to US$100.8 million compared with US$92.3 million in 1Q16 due to the increase operating income being offset by a US$29.7 million loss on extinguishment and modification of debt and a US$35.9 million increase in the income tax provision.
“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.”
Scientific Games said it had completed refinancing transactions during the first quarter of 2017 that lowered cash interest costs at current rates, reduced exposure to variable interest rates and extended a substantial portion of its debt maturities.
As of 31 March the Company had fully repaid borrowings under its revolving credit facility and its cash and availability under its revolving credit facility was US$657.7 million.
The company reported total gaming revenue increased by 4% to US$18.3 million, however gaming operations revenue – which is included in services revenue – declined 7% due to a $1.72 per unit decline in average daily revenue among other factors.
Gaming machine sales revenue increased 16% year-on-year, reflecting a 24% increase in shipments of new units and higher average selling price. Gaming systems revenue increased to US$61.5 million and table products revenue grew to US$49.9 million, aided by the acquisition of DEQ Systems Corp in January.
