Scientific Games reports net loss of $678.2 million in 15Q3

Monday 9th of November 2015

Las Vegas-based Scientific Games Corp reported a net loss of $678.2 million in 15Q3, compared with a loss of $69.8 million in the prior year period, with revenue and adjusted EBITDA falling short of estimates.

The company, which makes slots and other gambling equipment, reported costs of $605.2 million, or $7.03 a share, for job cuts, integrating recent acquisitions and related asset write-offs.

Scientific Games’ revenue of $671.6 million missed the $703.8 million average of 12 analysts’ estimates compiled by Bloomberg.

Adjusted earnings before interest, taxes, depreciation and amortization totaled $264.2 million, short of Wall Street projections of $273.3 million.

The company acquired Bally Technologies for $5.1 billion a year ago and took over WMS Industries in 2013 for $1.5 billion, both of which increased debt to $8.4 billion.

“The feedback from our customers to our approach and our products has been highly favorable,” CEO Gavin Isaacs said on a conference call with investors. “Our integration is going extraordinarily well and we are working together as one company.”

Deutsche Bank analyst Carlo Santorelli said despite the aftermarket quotes, “all was not bad in the quarter especially considering AEBITDA missed our estimate by just a slight margin.”

Santorelli added that positives for the period included margins being stronger than expected in both the gaming and interactive segments.