Scientific Games Revenue Drops by Nearly 20%
Scientific Games has reported a 19.9% fall in annual revenue to $2.72bn (£1.94bn/Є2.25bn) at the close of 2020.
The supplier has been hit hard by the loss of product sales after land-based premises were closed due to the pandemic.
Product sales revenue fell 44.4% to $553m, while services – though down by 12.7% – generated the majority of the income at $1.59bn. Instant product revenue was also marginally down, by 1.9%, to $578m.
The firm shaved 5.4% off of its operating expenses, taking them down to $2.7bn, just a shade under the revenue figure.
Meanwhile, restructuring and other costs were up 139.3% to $67m, which equated to annual operating income of $22m – a fall of 96%.
Scientific Games reported a pre-tax loss five times greater than that of the previous year, at $544m. Income tax too that to a net loss of $548m, or 364.4% more than in 2019.
Scientific Games chairman and chief executive Barry Cottle said: “As we start off the new year, I am truly excited about the team, products, and game franchises that should enable share gains, deal wins, and opportunities to enter new genres.”
He went on to pledge that: “The executive team and our board are working purposefully to transform our company, capitalize on the evolving industry trends and deliver outsized returns to our shareholders.”
However, Q4 of 2020 didn’t reveal an immediate bounce-back. Revenue was down 11.7% to $762m, of which $432m was from services, $177m was from product sales and instant product revenue was the only segment to rise, by 2.7%, to $153m.
Overall, this marked a 35.7% decline in revenue for SG Gaming to $286m, while SG Lottery revenue was up 9.9% to $256m. The firm’s social-gaming arm SciPlay’s revenue rose by 30.1% to $147m and SG Digital revenue grew 1.3% to $73m.