Scientific Games Reports Q2 Loss, Lags Revenue Estimates
Scientific Games has reported second-quarter 2018 loss of 6 cents per share, narrower than the year-ago quarter’s loss of 44 cents.
Revenues increased 10.2% from the year-ago quarter to $844.7 million but fell short of the Zacks Consensus Estimate of $852.3 million.
Gaming Segment (55.7% of total revenues) revenues increased 3% year over year to $470.7 million. Gaming operations and Gaming Machine sales decreased 6.4% and 7.3%, respectively.
Strong growth in Gaming Systems and Table Products of 26% and 22%, respectively, was partially muted by a year-over-year decline of 10% in the Gaming Operations segment. Gaming Machines sales witnessed growth of 3% from the year-ago period.
The year-over-year growth in Gaming Systems revenues was driven by increased system installation in casinos based in Alberta and Ontario as well as a rise in hardware sales backed by shipment of new iVIEW4 player-interface display units.
The decline in Gaming Operations revenues includes the impact of “$6.5 million reduction from the new revenue recognition accounting.”
Lottery Segment (24.5% of total revenues) revenues were up 24% from the prior-year quarter to $207.1 million.
Revenues from Lottery Systems increased 12% while Instant products declined 1% from the year-ago quarter.
The company has sub-divided the earlier Interactive business segment into Social and Digital. The results of recently acquired NYX are integrated in the Digital segment.
Social Segment (11.8% of total revenues) revenues increased 9.4% year over year to $99.7 million on the back of the “growing popularity” of Bingo Showdown apps as well as the new MONOPOLY Slots themed social casino app launched recently.
Digital Segment (8%) revenues grew to $67.2 million, of which $50.6 million is associated with the acquisition of NYX.