Las Vegas-based Scientific Games Corporation reported that its first quarter revenue got a boost from $301 million raised through the initial public offering of shares in SciPlay, the company’s social gaming division. The company retains a 17.4 percent minority interest in the social gaming business.
“We are focused on effectively operating our businesses, reducing costs and building upon the strong foundation for profitable growth that we see today,” said Scientific President and CEO Barry Cottle, according to the Las Vegas Review-Journal.
“Last week, we successfully took SciPlay public as a new company, which accelerates our ability to pay down debt. All of these actions support our steadfast commitment to smartly grow our business, drive free cash flow and create meaningful value for our stakeholders.”
The company’s first-quarter revenue beat analysts’ consensus expectations of $832.3 million in revenue for the quarter. But analysts also expected a loss of 4 cents a share instead of the posted 26 cents a share, but it is compared year-on-year to a quarter last year in which the company lost $202 million, or $2.24 a share.
Chief Financial Officer Michael Quartieri told the Review-Journal that the company paid down $145 million in debt and completed a major refinancing that lowered borrowing costs and extended debt maturities.
The company increased quarterly gaming machine sales to 4,801 from 4,667 in the first quarter of 2018, in part due to sales to the soon-to-open Encore Boston Harbor project due in June by Wynn Resorts Ltd.
