Aug 02, 2018 • 08:00 am ET



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Good day and welcome to the Scientific Games Second Quarter 2018 Conference Call. All participants will be in listen-only mode. (Operator Instructions) Please note, today's event is being recorded.

I would now like to turn the conference over to Robert Shore, Senior Director of Corporate Finance and IR. Please go ahead, sir.

Robert Shore

Thank you, Rocko. Good morning, everyone. During today's call, we will discuss our second quarter 2018 results and operating performance, followed by a question-and-answer period. With me this morning are Barry Cottle and Mike Quartieri.

(Forward-Looking Cautionary Statements)

We'll also discuss certain non-GAAP financial measures this morning. A description of each non-GAAP measure and a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure can be found in our earnings press release, as well as in the Investors Section on our website. As a reminder, this conference call is being recorded. A replay of this webcast and accompanying materials will be archived in the Investors Section of our website at

Now, let me turn the call over to Barry.

Barry Cottle

Thanks, Bobby. Good morning and welcome everyone. On behalf of the entire Scientific Games team, we're pleased to report that our second quarter results marked our 11th consecutive quarter of year-over-year increases in revenue and consolidated AEBITDA. Revenue grew 10% and AEBITDA increased to $340 million with all of our businesses growing.

We also achieved significant milestones in the quarter, including gamings roll-out of the exclusive JAMES BOND franchise, with the introduction of four Bond games on three platforms. This marks the starting point for leveraging the omni-channel license across Gaming, Lottery, and Social: Lottery and Digital's successful collaborative launch of iLottery in Pennsylvania, Lottery's successful launch of sports betting in Delaware, Digital signing and launch this week of a sports betting partnership with Caesars in New Jersey and coming soon to Mississippi, and Social's worldwide launch of the MONOPOLY Slots Social mobile app, which is off to a great start and now extends the player favorite brand across all of our divisions. So as you can tell, we have exciting growth initiatives in each of our businesses and we're taking advantage of these opportunities.

Over the past 60 days, I've met with our employees, executives, and customers, listening, learning, and enhancing my understanding of the business. As a result of these meetings, I have great confidence that our momentum is building and I am excited for the opportunity to lead Scientific Games. My career has been in the forefront of technology, entertainment and distribution, building games and compelling gaming-related products and services with a consumer orientation. So I appreciate both the value of building game franchises that players love and the benefits of building platforms that enable rich features and experiences for players, which is the heart of what we do here at Scientific Games. It also taught me about the power of consumer data and leveraging it to take a very strategic ROI-driven approach to building products and road maps aimed at what the