Scientific Games 17Q1 revenue rose 6 percent to $725.4 million YoY, up from $682 million, registering the sixth consecutive quarter of growth, the company reported to the stock exchange. Growth was led by a 24 percent increase in global new unit shipments of gaming machines and a 33 percent increase in interactive revenue.
During the first quarter 2017, Scientific Games reduced the total principal amount of the company’s debt by $45 million through payment of the remaining $45 million on its revolving credit facility, lowered annual cash interest costs, extended maturities to 2021 and 2022 for 95 percent of its debt, and reduced its exposure to variable interest rates. Scientific Games says it remains committed to prioritizing debt repayments from cash flow.
“Our continued steady improvement in revenue and margin are a direct result of our focus on creating innovative products that drive demand and our commitment to operational excellence,” said Kevin Sheehan, CEO of Scientific Games in the company’s first quarter 2017 report.
Operating income for 17Q1 increased 75 percent to $88 million from $50.3 million YoY as a result of the revenue growth and lower cost structure. Net loss was $100.8 million compared with $92.3 million for the same period. An increase in operating income was offset by a $29.7 million loss on extinguishment and modification of debt and a $35.9 million increase in the income tax provision.
EBITDA increased to $286.6 million from $258.8 million YoY driven by the higher revenue and lower cost structure. At March 31, 2017, the Company had fully repaid borrowings under its revolving credit facility, and its cash and availability under its revolving credit facility was $657.7 million.