Scientific Games Corporation (SGC) cites positive group-wide commercial gains, as the firm accelerates plans to divest the technology group’s lottery and sports betting units that were disclosed during the quarter.
Publishing its Q2 trading results, SGC registered consolidated group revenues of $880 million, up 63% on corresponding Q2 2019 results of $539 million.
Period growth was primarily attributed to the COVID-19 commercial recovery of SGC’s Gaming unit (machines and gaming operations) which recorded a 300% increase in revenues to $367 million (Q2 2020: $97m).
The company’s Gaming unit recovery would be buoyed by record results achieved by the SGC Lottery and Digital unit, which registered respective period revenues of $266 million (+27%) and $93 million (+27%)
SGC Lottery cited a strong take-up of its instant lottery products from retail customers, whilst SGC Digital performance was driven by a record sports betting performance as well as the ‘strength of its original content’ supplied to online gambling partners.
The corresponding double digit growth recovery achieved across its flagship units saw SGC declare a period consolidated AEBITDA of 383 million up 217% on Q2 2019’s $121 million.
Group period expenditures were registered at $53 million (Q2 2020: $39m) as SGC maintained a ‘disciplined cost control and focus on balance sheet management’ which saw the company declare a net cash income of $113 million reversing Q2 2020 loss of $200 million.
Maintaining its fiscal duties, during period trading, SGC governance reduced the firm’s long-term debt holdings from $9.3 to $9 billion.
Positive Q2 trading results saw SGC leadership underline the value of the firm’s lottery and betting units, which will be put up for sale as part of the firm’s ‘strategic deleveraging’ – as SGC transforms into a single vertical company.
SGC detailed progress on its transformation objectives, in which the company has enlarged its games development capacity, acquiring the assets of Lightning Box and Koukoi Games.
Barry Cottle, President and Chief Executive Officer of Scientific Games, said, “I am very pleased that we continue to make tremendous progress on all of our key strategic pillars while also driving significant growth in the quarter. We have emerged from the pandemic a much stronger Company with significant momentum.”
“All of our businesses grew sequentially on both the top and bottom lines in the quarter. Gaming delivered its highest revenue quarter since the fourth quarter of 2019, Lottery and Digital achieved record results and SciPlay delivered its second-highest revenue quarter in its history.
“Following our strategic review, we will be singularly focused on becoming a leading cross-platform global game company with focus on content and digital markets. We are moving rapidly to transform our company and I have never been more optimistic about our path forward.”