Return to profit for Scientific Games

The New York-based firm revealed that its operating income for the first three months of 2012 rose by 54.8 percent year-on-year to us$ 22.3 million while earnings before interest, tax, depreciation and amortisation improved by 15.6 percent when compared to the initial quarter of 2011 to us$ 86.7 million.

“United States lottery retail sales growth levels in the first quarter of 2012 were among the highest that the industry has experienced,” said Lorne Weil, Chairman and CEO for Scientific Games. “This robust growth was driven by a variety of progressive measures including lottery private management, prize payout increases and the introduction of tiered pricing for national jackpot games. “Additionally, the advantages of private management have been illustrated by the strong performance of the Illinois Lottery.

“I believe these types of progressive measures can continue to drive growth for the lottery industry in 2012 and, more importantly, should lead to opportunities with additional US and international customers, supporting industry growth well into the future.”

All of this saw Scientific Games report net income for the first quarter of 2012 of us$ 1.8 million, which is an improvement on last year’s deficit of us$ 6.9 million, although its free cashflow stood at only us$ 100,000 while total capital expenditures remaining static at us$ 21.8 million. “We're extremely pleased with our first quarter results,” said Jeffrey Lipkin, Senior Vice-President and Chief Financial Officer for Scientific Games.

“This strong performance is a testament to both the stability and the diversity of our business as well as the benefits of our participation-based business model across our segments. Our investments in revenue enhancing products, services and technology have driven our growth and improved our operating leverage and return on invested capital,” Lipkin concluded.