Scientific Games’ CEO says Eldorado, Caesars merger not a concern

Scientific Games’ president and CEO is confident the slot machine manufacturing company would be able to weather large mergers and acquisitions in the gaming industry.

As Eldorado Resorts Inc. gears up to purchase Caesars Entertainment Corp. next year, CEO Barry Cottle said during a call to investors Thursday evening that he wasn’t concerned about a lack of prospective product sales and lease placements from “large” mergers and acquisitions.

“Consolidation has been happening for a while,” Cottle said. “It’s not new. In general, operators are willing to pay for the best content. … And if you look at most of the ones that have been recently announced, most are strong customers of ours.”

The company also reported that it will continue to focus on reducing net debt leverage.

Net loss in the second quarter was $75 million compared to $6 million last year, and primarily driven by a $60 million debt financing expense.

So far this year, the company has paid down $300 million of debt, part of which was paid for by the initial public offering of a minority interest in social gaming business SciPlay Corp. The IPO was finalized in the second quarter.

Cottle said the company will continue to focus on deleveraging debt through earnings growth, strategic hires and a focus on emerging markets like iGaming.

Shares of Scientific Games rose $0.32, or 1.6 percent, to $20.77.

Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.