Scientific Games is continuing to make “tremendous progress” across key pillars which have been identified as being primary drivers for future growth, as it asserts that it has “emerged from the pandemic a much stronger company”.
The group says that it “is moving rapidly to execute on its vision with a singular focus to become a leading cross-platform global game company, accelerating efforts to de-lever and invest for sustainable growth”.
This, it adds, is evidenced by the organic investments in content R&D and a new Las Vegas igaming studio, as well as the targeted acquisitions of Lightning Box and Koukoi Games.
This comes as the firm publishes its results for the second quarter ending June 30, 2021, during which time consolidated revenue was $880m compared to $539m, up 63 per cent when compared to the prior year period.
Scientific Games gaming division saw an over 300 per cent uptick to $367m (2020: $91m), as well as an over 50 per cent increase when compared to the prior quarter.
This was driven by the strength of the group’s new product roadmap, record GGR in the US, and a rebound in the UK and Europe. Gaming revenue and AEBITDA also benefited by $38m due to the FOBT recovery.
Lottery and digital both scored record quarter, driven by strong instant sales, to finish up at $266m (2019: $209m) and $93m (2020: $73m), with SciPlay dropping 12 per cent to $154m from the $166m recorded during the COVID-19 enhanced prior year.
Michael Eklund, EVP and CFO of Scientific Games, explained: “In concert with our board, we announced a strategic action plan to transform our company and unlock value.
“We are taking decisive steps to optimise our portfolio, de-lever our balance sheet and invest to grow. I am very encouraged by the interest and discussions we are having around our proposed divestitures, and we are making great progress as we move quickly to unlock shareholder value.
“We are proud of the team as they continue to execute during this exciting time, delivering a quarter with strong revenue, profit and cash flow growth.
“The team is laser focused on maintaining discipline to drive balance sheet strength and operational efficiency and we are energized for the future.”
Group wide net income during Q2 came in at $113m, compared to a net loss of $198m one year earlier due to strong revenues in the gaming business segment, which were significantly impacted by COVID-19 disruptions during 2020, coupled with a $63m non-cash gain associated with the SportCast acquisition. The prior year period also included temporary austerity measures that were implemented due to COVID-19.
Consolidated AEBITDA was $383m compared to $121m, driven by double-digit AEBITDA growth in gaming, lottery and digital to finish up at the highest figure in the company’s history.
Barry Cottle, president and CEO of Scientific Games, commented: “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.”