The company has established a solid foundation in the gaming sector despite loss, says Scientific Games boss.
Gaming equipment manufacturer Scientific Games Corp. has reported its third quarter earnings with a net loss of $678.2m compared to $69.8m in the prior year period. According to the press release, the net loss is mainly attributable by steep noncash goodwill and intangible asset impairment charges this year. However, the company said it remains on track to create substantial cost savings because of its merger with Bally.
“As of September 30, 2015, we implemented $194 million of the $200 million of annual cost savings related to the Bally acquisition which were expected to be implemented this year, and we implemented more than 85% of the expected second-year WMS-related synergies of $30 million,” said Scott Schweinfurth, Scientific Games’ Executive Vice President and Chief Financial Officer.
The company acquired Bally Technologies for $5.1b a year ago and took over WMS Industries in 2013 for $1.5b, which increased the company’s debt to $8.4b.