Scientific Games interactive revenue rises 52% in Q1

Gaming and lottery technology supplier Scientific Games Corporation (SGMS) saw revenue rise 70% in the first full quarter of contributions from its $5.1b acquisition of rival Bally Technologies.

Overall revenue in the three months ending March 31 rose to $656.7m from $388m in the same period last year. Operating income swung from a $12.1m loss last year to a gain of $18.1m. However, acquisition- and integration-related expenses resulted in a net loss of $86.4m for the quarter, nearly twice the $45m lost in Q1 2014. On a non-GAAP basis, adjusted earnings more than doubled to $252.1m.

The Bally acquisition had a dramatic effect on SGMS’ gaming segment, which reported revenue up 161% to $426m (services up 148% to $238m and product sales up 178% to $188m). Bally operations contributed $286.7m to the gaming segment’s total.

The lottery segment saw revenue fall 4.1% to $186m, thanks to a 35% decline in product sales and a 9% fall in services revenue. The quarter saw SGMS break off talks to run the Turkish national lottery with its local partners, which had won the 10-year concession last July. The consortium couldn’t arrange the necessary funding, causing Turkey to award the concession to the runner-up bidder ERG-Ahlatçı.