GGRAsia – Sci Games 2Q revenue up 21pct sequentially

Sci Games 2Q revenue up 21pct sequentially

Aug 10, 2021 Newsdesk Industry Talk, Latest News, Top of the deck

Casino equipment, lottery services and online games provider Scientific Games Corp says its second-quarter net income was US$109 million, compared to a US$203-million net loss in the second quarter of 2020.

It stated in a Monday filing in the United States that total revenue for the three months to June 30 was US$880 million, up 20.7 percent sequentially from the first quarter’s US$729 million. Second-quarter revenue was up 63.3 percent judged year-on-year, from the US$539 million in the second quarter of 2020.

The group’s quarterly consolidated adjusted earnings before interest, taxation, depreciation and amortisation were up 216.5 percent year-on-year, at US$383 million, from US$121 million a year earlier.

Basic earnings per share were US$1.13, compared to a loss of US$2.15 per share in the prior-year quarter.

Diluted earnings per share were US$1.10, versus a loss of US$2.15 in the second quarter, 2020.

In the gaming segment, including casino slot machines, electronic table games and systems, total revenue was up 303.3 percent year-on-year, to US$367 million, from US$91 million.

Quarterly machine sales generated US$100 million, up 88.7 percent from the US$53 million a year earlier.

Sales of systems brought in US$52 million, up 205.9 percent from the US$17 million a year earlier, said Scientific Games.

According to the firm, table products generated US$34 million, a rise of 580.0 percent on the US$5 million in the second quarter last year.

In the international market – including Asia Pacific – the tally of new-unit shipments of machines fell 40.0 percent year-on-year, to 1,751, from 2,917.

As of June 30, the face value of long-term debt for Scientific Games was US$9.14 billion. The group noted it had paid down US$500 million in debt since October.

The group said in a press release that “disciplined cost and balance sheet management generated US$149 million of net cash provided by operating activities, and US$133 million of free cash flow in the quarter”.

“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,” said Barry Cottle, president and chief executive of the group, in prepared remarks contained in the press release.

“We have emerged from the pandemic a much stronger company with significant momentum,” he added.

Quarterly revenue at SciPlay Corp, a digital operation majority-owned by Scientific Games – which also announced its results on Monday – was down 7.0 percent judged year-on-year, at US$154 million, versus US$165.6 million in the second quarter 2020.

Nonetheless Mr Cottle noted the second quarter 2021 revenue was “second highest… in its history”.

In July, Scientific Games made a proposal to acquire the remaining 19 percent of equity interest in SciPlay that it does not currently own.