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Scientific Games Has Poor First Quarter

Cyber betting development firm Scientific Games Corporation has released its first quarter 2013 financial results, noting a weak overall performance.

Key financial indicators for the quarter ending March 31st, 2013 were:

  • Revenues down at $219.6 million (Q1-2012 $231.2 million)

  • EBITDA down at $78.7 million (86.7 million in Q1 last year)

  • Net income loss of $13.2 million (Q1-2012: $1.8 million profit)

  • Capital expenditure up at $36.3 million (Q1-2012: $21.8 million)

  • Gaming revenues down at $35.1 million (Q1-2012: $41.2 million.

  • At March 31, 2013, cash and cash equivalents of $90 million and availability under revolving credit facility of $205.7 million

  • Total debt of $1,467.7 million as of March 31, 2013 compared to $1,468.2 million at December 31, 2012.

  • Received $2.2 million in cash dividends from equity investments in first quarter of 2013.

Speaking about his company's performance and taking an optimistic tone, Scientific Games CEO A. Lorne Weil said, "We anticipate that momentum will accelerate as the year progresses based on the planned launch and ramp up of incremental revenue opportunities later in 2013. In addition, we are excited about the opportunities presented by our pending acquisition of WMS, which is proceeding as expected and which we believe will be transformational for our company."

The firm's financial document noted this selection by reporting: "Scientific Games had been selected with its partners as the primary vendor team to operate internet gaming systems and services for the Delaware State Lottery. Delaware is the first U.S. state to implement comprehensive intrastate iGaming including poker, slots and bingo."

"For this bid, we teamed up with 888 and Williams Interactive, a subsidiary of WMS, to provide a full turnkey solution for the gaming platform, content and operational services. This joint effort combines 888's decade-long experience at the forefront of the online gaming industry with Scientific Games' proven ability to provide added value, turnkey solutions to government-sponsored and commercial gaming operators, and Williams Interactive's premium iGaming products and services."

"We believe this joint effort with WMS is a prime example of the type of opportunities that can be achieved by Scientific Games' acquisition of WMS."

"In connection with the pending WMS acquisition, we incurred regulatory costs, professional fees and other expenses totaling approximately $3.8 million in the first quarter of 2013, with additional transaction-related fees and expenses anticipated to be incurred throughout the balance of 2013."

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