Scientific Games Reports Stable Quarter
Scientific Games Corporation (SGC) reported a 1 per cent rise in group revenues to $729m (£513m/€599m) from $725m in the first three months of 2021, in line with the firm’s expectations.
The Lottery, SciPlay and Digital businesses delivered double-digit revenue growth over the period, as customer engagement grew.
Lottery was up 17 per cent from $212m to $248 for the quarter ended March 31, 2021. SciPlay registered a 28 per cent boost from $118m to £151m and the digital division grew 12 per cent from $77m in 2020 to $86m across the latest full quarter.
However, gaming revenue continued to be impacted by casino restrictions and closures, particularly in Europe. It fell by 23 per cent from $318m at the same stage in 2020 to $244m by the end of March 2021.
Net loss was $9m, compared to $155m in the prior-year period, primarily due to the gaming business segment’s receivable credit allowances, inventory and goodwill impairment charges which totalled $91m.
Consolidated adjusted earnings before interest, taxes, depreciation and amortisation was up 35 per cent to $270m, compared to $200m.
Net cash provided by operating activities was $123m, compared to $120m a year ago. This, the firm said, was primarily driven by improved operating results, and partially offset by an unfavourable change in working capital accounts and the timing of cash interest payments.
Available liquidity, including SciPlay, at the end of the first quarter, was $1.3bn. Subsequent to quarter-end, SGC said it made a $150m voluntary repayment on SGI’s revolving credit facility.
SGC president and chief executive officer Barry Cottle said: “Despite the continued challenges, our teams’ dedication and focus enabled us to build on our gains from last year. We delivered another strong quarter, enabling us to return to growth on both the top and bottom lines. Our new gaming strategy and product roadmap continues to have success and our lottery, SciPlay and digital businesses delivered strong growth in the quarter.
“Our results demonstrate the strength of our content and franchises, engaging players on any platform they want to play. The executive team and our board are continuing to work together and are making great progress as we look to optimise our portfolio, deleverage our balance sheet and capitalise on key areas of growth in order to unlock value for our shareholders.”
Executive vice president and chief financial officer Michael Eklund, added: “The team has really stepped up to make meaningful progress on our key initiatives. We remain laser focused on delivering revenue and AEBITDA growth, and strengthening our balance sheet. Our continued focus on operational efficiency is enhancing our cash flows. We are executing at a high level and I could not be more excited about the path forward for Scientific Games.”