Scientific Games Corporation’s Q3 results for the third quarter ended September 30, 2018 have been published, with a reported net loss of $351.6m compared to $59.3m in the prior year period. The shortfall was, said the firm, primarily driven by $338.7m in restructuring and other charges. Net revenue did, however, increase by seven per cent to $821m, up from $768.9m year-on-year.
Consolidated attributable EBITDA increased nine per cent to $325.7m from $299m in the prior year period, mainly driven by higher revenue and continued operational efficiencies. Consolidated AEBITDA margin was 39.7 per cent, compared to 38.9 per cent year-on-year.
In addition to the standard reporting, the company also revealed that it is considering a possible initial public offering of a minority interest in its social gaming business in 2019. “The social gaming business continues to experience rapid growth and has reached significant scale,” it advised.
“The company believes an IPO would provide greater flexibility to pursue additional growth initiatives specifically designed for its social gaming business, as well as unlocking additional value for Scientific Games stakeholders. The company anticipates that the proceeds from the IPO would primarily be used to repay debt.”
Barry Cottle, CEO and president, said: “We are very pleased with the growth we are seeing across our businesses as we continue to lead our industry into the future. Our investments in digital, sports betting, and new games are producing the most innovative and engaging products in the market and we are excited about the customer response here in the US and around the world.
“For our rapidly growing social business, an IPO would give us greater flexibility to pursue growth for the business and drive value for stakeholders. We remain focused on delivering for our customers and running our business efficiently and effectively to drive revenue, reduce costs and continue to build momentum across the company.”
Michael Quartieri, CFO, added: “This quarter marks our twelfth consecutive quarter of year over year growth in revenue and Consolidated AEBITDA. Our focus on generating cash flows provides us a clear avenue to strengthen our balance sheet.”