Gaming solutions provider Scientific Games has registered a huge rise in year-on-year quarterly revenue, but an increase in net loss in the three months through to the end of June 2014.
Scientific Games, which announced on Friday that it had struck a deal to acquire online casino games and solutions firm Bally Technologies in a deal worth $5.1 billion (€3.8 billion), said that quarterly revenue had rocketed from $235 million to $416.9 million.
Attributable earnings before interest, tax, depreciation and amortisation (EBITDA) increased by $47.6 million to $132.1 million.
However, the company’s quarterly net loss increased from $12.4 million to $72.4 million.
“Our second quarter revenue of $416.9 million reflected contributions from the WMS acquisition, which substantially expanded our gaming business, and a 7% year-over-year increase in lottery revenue,” said Gavin Isaacs, Scientific Games’ president and chief executive officer.
“Although our second quarter results continued to reflect challenging gaming industry conditions, we saw sequential quarterly revenue growth across our businesses and benefits from our ongoing integration initiatives, which contributed to a $9.3 million sequential quarterly increase in attributable EBITDA.
“While we have made significant progress across our worldwide organization with our integration efforts, we believe there are additional opportunities to grow our business and further strengthen performance.”
Isaacs also took the opportunity to comment on the deal to acquire Bally, calling the pending transaction “a unique opportunity to combine two exceptional companies with long track records of delivering leading-edge games, gaming technology products and systems to their customers”.
He added: “The transaction would significantly expand Scientific Games’ portfolio to include leading casino management systems and table products, including automatic shufflers, proprietary table games and electronic table systems, and should drive further expansion of Scientific Games’ social and real-money interactive businesses.
“We believe the combination will provide opportunities to cross-utilise the companies’ content and technology across lottery, gaming and interactive distribution channels and platforms, further diversify our revenue streams, and increase our cash flows allowing us to meaningfully reduce our leverage.
“I look forward to meeting with our gaming and lottery customers and sharing our vision for how the combined company expects to provide new value for them through our creation of innovative games and value-added services that can help them engage their players and grow their revenues.”
source : www.igamingbusiness.com
