This week, Scientific Games Corporation delivered a downbeat collection of results for Q3 2020, with COVID pushing sales down to $698 m versus $855 m year-on-year.
The company described trading in its statement as being adversely affected by the COVID-19 disruptions, particularly during the quarter in the Gaming business unit, affecting comparability with the previous year era.
In the quarter, however, its Lottery, SciPlay and Digital companies developed, emphasising, SG said, the strategic investments it has made in the digital space and the breadth of its portfolio. With its digital company up almost 50 percent and SciPlay up over 50 percent from the previous year, all three boosted AEBITDA by 10 percent or more.
Owing to lower sales and the impact of COVID-19, the net loss for the quarter was $111 million compared to net income of $18 million year on year. Results were also affected by a $24 million loss on debt re-measurement compared to a $19 million gain in the timeframe of the previous year.
More positively, the free cash flow of the company grew $11 m from the previous year to $62 m, driven largely by changes in working capital.
President and CEO Barry Cottle said: “As a result of our team’s focus on our strategy, our diverse portfolio and our commitment to cost management, we delivered strong cash flow in the third quarter. I really am excited around all the great games, products and solutions we have to help our partners navigate the current environment and provide innovative solutions for the future.
“I’d also like to welcome the proven industry leaders to our board who will augment our focus on de-levering our balance sheet and will help the company prudently and thoughtfully shape our corporate strategy.”
Executive Vice President and CFO, Michael Eklund added: “The team did a great job driving cash flow improvements this quarter, and we will continue to diligently evaluate additional opportunities to increase cash flow and de-lever.
“Looking ahead, our team will remain highly focused on driving operational efficiencies, further bolstering our liquidity and strengthening our balance sheet. My overarching focus is to improve the balance sheet through operational and business process improvements.”