LAS VEGAS, Aug. 1, 2018  /PRNewswire/ -- Scientific Games Corporation (NASDAQ: SGMS) ("Scientific Games" or the "Company") today reported results for the second quarter ended June 30, 2018.

Second Quarter 2018 Financial Highlights:

• Second quarter revenue rose 10 percent to $844.7 million, up from $766.3 million in the year ago period, reflecting $50.6 million in revenue from NYX, along with growth in all of our businesses. Gaming and Lottery revenue includes a $10.0 million negative impact from applying the new revenue recognition accounting.
• Net loss decreased to $5.8 million compared to $39.1 million in the prior year period, primarily driven by higher revenue and more efficient business processes throughout the organization and reflective of $33.5 million in restructuring and other charges offset by a $34.5 million gain on remeasurement of Euro denominated debt.
• Consolidated Attributable EBITDA ("Consolidated AEBITDA"), a non-GAAP financial measure defined below, increased 8 percent to $340.4 million from $314.8 million in the prior year period, primarily driven by higher revenue and more efficient business processes throughout the organization. Consolidated AEBITDA margin, a non-GAAP financial measure defined below, was 40.3 percent.
• Net cash provided by operating activities decreased to $102.5 million from $168.5 million in the year ago period driven primarily by the timing of interest payments resulting from the February 2018 refinancing.

Barry Cottle, CEO and President of Scientific Games, said, "I'm very pleased with our accomplishments this quarter and particularly proud that all four businesses continued to experience growth this quarter and are accelerating our financial momentum. Our core businesses are strong and ready to capitalize on the significant opportunities in the marketplace to drive growth by delivering great games and robust platforms and systems that enable them. We remain focused on delivering results, maintaining our financial discipline and strategically investing in our future to maximize shareholder return."

Michael Quartieri, Chief Financial Officer of Scientific Games, added, "This quarter marks our eleventh consecutive quarter of year over year growth in revenue and AEBITDA. We have clear momentum across all of our global businesses. The improvement in our operating results, along with lower interest costs, provides us with a clear path of increasing cash flows, deleveraging, and strengthening our balance sheet."

• Total gaming revenue increased $13.5 million, despite an unfavorable $6.5 million impact on Gaming operations revenue from the new revenue recognition accounting effective in 2018, and AEBITDA increased 4 percent, or $8.8 million, to $235.7 million, primarily reflecting a 50 basis point improvement in the AEBITDA margin to 50.1 percent reflecting more efficient business processes.
• Gaming operations revenue declined $18.5 million in the second quarter 2018, inclusive of the $6.5 million reduction from the new revenue recognition accounting. On a quarterly sequential basis, we experienced an 8-unit increase in the installed base of Wide-Area Progressive ("WAP") and premium participation gaming machines and a $0.30 increase in average revenue per day, and our installed base of other leased and participation games increased by 80 units with average daily revenue down $0.29, which reflects the additional placements of lower yielding units in Greece.
• Gaming machine sales revenue increased $4.3 million year over year, driven by strong replacement and new opening demand in the U.S. and Canada, which was offset by lower international sales. Replacement units in the U.S. and Canada increased 16 percent year over year to 4,388 units, due to ongoing demand for the TwinStar family of cabinets. The average sales price increased 1 percent to $17,699, reflecting a more favorable mix of gaming machines.
• Gaming systems revenue increased $17.2 million to $84.3 million, primarily due to ongoing installations of a new system to casinos in the provinces of Alberta and Ontario, coupled with increased hardware sales, reflecting shipments of innovative iVIEW®4 player-interface display units. The deployment of the new system to additional casinos across Alberta and Ontario is expected to continue throughout 2018, and beyond.
• Table products revenue increased $10.5 million to $58.9 million, reflecting increased sales of utility products.

• Total lottery revenue increased $4.8 million, or 2 percent, to $207.1 million, and AEBITDA increased 4 percent to $99.4 million, compared to $95.6 million in the prior year, with AEBITDA margin improving to 48.0 percent, primarily reflecting the revenue increase and a more profitable revenue mix partially offset by higher selling, general and administrative expenses.
• Instant products revenue of $150.1 million was driven by a 2 percent increase in U.S. revenue, partially offset by 8 percent decrease internationally.
• Lottery systems revenue increased as a result of a $6.0 million, or 12 percent increase in services. The increase in services revenue was driven largely by organic growth domestically.