Scientific Games reported a 66 percent year-on-year increase in revenue to $691.5 million in 15Q2, though net losses grew to $102.2 million.
“Our focus on accelerating revenue growth is balanced with our commitment to deliver the realization of anticipated cost savings that will drive expected further enhancement of operating margin and cash flow in the second half of 2015 and beyond," said CEO Gavin Isaacs.
In November, Scientific Games acquired slot machine specialist Bally Technologies for $5.1 billion.
SG recorded certain charges and items related to the integration of the Bally and WMS acquisitions in 15Q2 that impacted the comparability of reported results, the company said.
In the corresponding period the year before the company recorded employee termination and restructuring costs of $4.9 million and merger and acquisition costs and other charges of $2.9 million primarily associated with the WMS acquisition, along with $0.4 for legal contingencies and settlements.
“Our cost savings progress is reflected in the year-over-year and quarterly-sequential improvement in [adjusted earnings before interest, taxes and amortization] and AEBITDA margin. By July 31, 2015, we had implemented $184 million in Bally-related annual cost savings and, as a result of accelerating actions originally planned for 2016 into 2015, we are raising our first-year target from $188 million of cost savings to an expected $200 million, while also implementing an additional $30 million of WMS-related annual cost savings by the end of 2015,” said Isaacs.
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