Gambling firm Scientific Games has released its second quarter 2014 financial results,noting strong performance but taking a loss thanks to expenses and paying down debt.
Key financial indicators for the quarter ending June 30th, 2014 were:
- Group revenue increased to $416.9 million (Q2/2013: $235.0 million), up 77 percent
- Attributable EBITDA increased $47.6 million (Q2/3013: $132.1 million).
- Net loss of $72.4 million attributed to the early extinguishment of debt (Q2/2013: $12.4 million)
Company highlights for the period were:
Gaming segment revenue increased $168.5 million principally due to $169.6 million of revenue from WMS
Gaming segment services revenue increased $92.8 million, reflecting $93.0 million of revenue from WMS.
Interactive services revenue was $32.3 million reflecting the acquisition of WMS.
Growth in revenue from the social gaming business in DAU was 1.4 million, reflecting a significantly larger player base and growth in players using mobile.
Operating loss improved by $6.6 million to a loss of $1.8 million, reflecting the acquisition of WMS, associated integration-related savings and an improved UK Gaming cost structure.
Selling, general and administrative expense increased $37.9 million primarily from WMS
Research and development expense increased $23.7 million primarily from WMS
Employee termination and restructuring costs reflected $2.2 million of charges associated with integration-related cost savings initiatives
Depreciation and amortization increased $45.4 million, of which $53.2 million was from WMS.
Commenting on the performance Scientific Games President and CEO Gavin Isaacs said, "Our second quarter revenue of $416.9 million reflected contributions from the WMS acquisition, which substantially expanded our gaming business, and a 7 percent year-over-year increase in lottery revenue."
"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."