Gambling equipment giant Scientific Games said Thursday company revenue nearly doubled in the first quarter, its first full three-month period since buying rival Bally Technologies for $5.1 billion.
However, the manufacturer, which moved its headquarters to Las Vegas in January, said its net loss for the quarter that ended March 31 also nearly doubled, primarily due to costs associated with the Bally transaction.
Scientific Games said it lost $86.4 million, or $1.01 per share in the quarter. However, revenue grew to $658.7 million, compared to $388.1 million one year earlier.
On a conference call with analysts and investors, Scientific Games CEO Gavin Isaacs said the company is now focused on selling “the complete” package — slot machines, lottery products, Interactive games, and casino and lottery system.
Isaacs said the company “now has the ability to provide end-to-end products for casinos.” He said Scientific Games struck a deal with the $3.5 billion Baha Mar resort in the Bahamas for a systems, games, table games, and an interactive gaming platform.
Also this week, Scientific Games said it struck a deal with Penn National Gaming to provide a social gaming platform to the casino operator.
Stifel Nicolaus Capital Markets gaming analyst Steve Wieczynski told investors that despite the net loss, the quarter was not entirely full of negatives. He said the company “achieved several commendable accomplishments” during the three month period.
Scientific Games acquired slot machine maker WMS Industries Inc for US$1.5 billion in 2013 and with the Bally deal, is now considered the casino industry’s largest gaming equipment provider.
“The process of integrating Bally and Scientific Games is ahead of schedule,” Isaacs said, adding the company expects to reach 80 percent of its anticipated $235 million in cost savings by the end of the year.
Contact reporter Howard Stutz at firstname.lastname@example.org or 702-477-3871. Follow @howardstutz on Twitter.