Scientific Games reported a narrowed net loss of $24 million for the first quarter ended March 31, 2019, driven by higher operating income, and a reduction in restructuring and other expenses.
FIrst quarter revenue rose 3 percent to $837 million, reflecting growth in its lottery and social businesses, according to a company filing.
Looking ahead, Barry Cottle, president and CEO of Scientific Games, said the company will focus on effectively operating its business, whilst reducing costs and building a foundation for profitability. The CEO noted that last week, the company was successful in taking SciPlay public as a new company, accelerating its ability to pay down debt.
Michael Quartieri, chief financial officer of Scientific Games, said that the company was able to pay down $145 million in debt this quarter, and completed a major refinancing that lowered borrowing costs and extended our debt maturities.
“As a result of the SciPlay IPO, we expect to continue our deleveraging path and the efficient deployment of our resources to generate the returns needed to enhance our free cash flow,” added Quartieri.
During the quarter gaming operations revenue increased slightly, due to an average daily revenue per unit increase for international operations.
Gaming machine sales also increased in the quarter, due to increased shipments for new opening and expansions in the U.S. and Canada – namely Encore Boston Harbor.
Gaming systems revenue was flat, reflecting fewer major site installations than the previous years.
Lottery systems revenue grew by $35 million, primarily related to equipment hardware sales and new lottery contracts in Maryland and Kansas from the prior year period, while social gaming revenue increased 22 percent, driven by increased monetization of paying players, said the company.