Scientific Game Corp. beat earnings estimates for the third quarter, sparking a jump in the supplier’s stock price.
For the three months ended September 30, the company logged $855 million in revenue, up 4 percent from a year ago. Net income was $18 million, compared to a net loss of $352 million in Q3 2018. According to the company, net income was driven by increased sales and a $19 million gain on the re-measurement of the euro. The prior year period included $339 million in restructuring and other charges primarily related to the verdict in the Shuffle Tech lawsuit.
Consolidated EBITDA increased 6 percent to $344 million for the quarter, driven by higher revenues and business improvements. Net cash from operations was $141 million.
“Each of our business segments is growing on both the top and bottom line, enabling us to continue on our path to 5.5 times net debt leverage by the end of 2020,” said Barry Cottle, president and CEO of Scientific Games. “We showcased our great games and products at G2E, which demonstrated our industry-leading position as a one-stop solution across platforms and key content. This positioning will allow us to enhance partner operations, grow in existing markets and win in emerging markets.”
“Our products grew the top-line, and operating leverage was driven by business improvements,” added Chief Financial Officer Michael Quartieri. “We believe there are a number of avenues for further growth driven by share gains and new market opportunities. We remain firmly committed to maximize cash flows and deliver our balance sheet.”
