Third quarter revenue increased to $415.6 million from $234.4 million within the prior-year quarter, primarily reflecting the contribution of WMS operations and a 9% increase in total lottery revenue. Attributable EBITDA, a non-GAAP financial measure, increased $38.3 million from the prior-year quarter to $128.2 million. The corporate incurred a net lack of $69.8 million, or $0.82 per share, such as: a $19.7 million, or $0.23 per share, non-cash impairment charge to put in writing the Company's equity investment in its Northstar Illinois three way partnership; $5.9 million, or $0.07 per share, of transaction- and financing-related costs related to the pending acquisition of Bally Technologies, Inc. and $1.9 million, or $0.02 per share, of employee termination and restructuring expense. Within the prior-year period, the corporate reported a net loss from continuing operations of $0.4 million, or $0.01 per share, together with $2.5 million, or $0.03 per share, of WMS-related transaction costs.
"During the quarter, the corporate generated $126 million of money flow from operations, which after $62 million of capital expenditures ended in $65 million of free cash flow," said Gavin Isaacs, President and Chief Executive Officer. "While our operating results still require further improvement to succeed in the extent of performance we expect, we believe we're making solid progress in utilization of working capital, implementation of WMS-related integration initiatives, strengthening the organization-wide cope with disciplined cost management and directing capital allocation only toward our highest-return opportunities."
For the nine months ended September 30, 2014, revenue increased $531.6 million from the prior-year period to $1,220.6 million, primarily reflecting the contribution from WMS' operations. Attributable EBITDA increased to $383.1 million from $252.0 million. The web loss increased to $187.2 million from $26.7 million, primarily reflecting an operating lack of $16.3 million, which contains $13.0 million of transaction-related costs and legal contingencies, and $12.4 million of employee termination and restructuring expense, in comparison to operating income of $49.2 million within the prior-year period. In addition, the online loss for the primary nine months of 2014 was also impacted by a $25.9 million loss on early extinguishment of debt, the $19.7 million non-cash impairment charge referenced above and $8.0 million associated with the Company's share of an estimated net shortfall accrual recorded by its Northstar Illinois joint venture, and $67.6 million of upper interest expense, partially offset by a $14.5 million gain at the sale of the equity investment in Sportech PLC. Within the prior-year nine month period, the corporate had $9.5 million of transaction- and financing-related expenses and $0.3 million of employee termination and restructuring expense.
"In addition to the progress being made with the WMS integration, we're enthusiastic about the prospective to meaningfully increase free cash flow following the Bally acquisition, which we continue to anticipate closing this quarter, and deploying our free cash flow to cut back net debt," Isaacs continued. "Reflecting the fantastic efforts of our integration teams, our plans at the moment are expected to yield greater expected savings than originally anticipated. As a result, we're increasing our estimate of annual cost synergies anticipated to be realized from the pending Bally transaction by the top of 2016 from $220 million to $235 million. In addition, we now expect to appreciate an extra $15 million in annual cost synergies from the WMS acquisition, bringing the overall to $115 million in annual cost savings by the tip of 2015, of which slightly greater than half have been achieved to this point. We think to incur an extra $3 million of prices to reach the extra $15 million of expected WMS cost synergies and an extra $4 million of prices to reach the incremental $15 million of anticipated cost synergies from the pending Bally acquisition.
"With contributions from WMS, the exciting launch of the MONOPOLY MILLIONAIRES' CLUB(TM) lottery game on October 19, 2014, and increased projections for cost synergies expected to extend free cash flow, we remain confident the mix of Scientific Games and Bally will deliver significant strategic and monetary benefits as we collect two organizations with similar cultures: a customer-first approach and deep-rooted passion for the improvement of significant gaming entertainment. The collaborative and productive integration planning by our teams has reinforced this belief," Isaacs added.
Completion of the Bally acquisition is subject to approval by Bally's stockholders, receipt of certain gaming regulatory approvals and other customary closing conditions.
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