For its corporate contingency plan to tackle global COVID-19 headwinds, Scientific Games Corporation (SGC) outlined good improvement, adding that it aims to achieve ‘$100 million in cost savings during Q2 trading.’
The Nasdaq Technology Group released new guidance on its COVID-19 contingency plan activated on 31 March 2020 to investors Wednesday morning.
In order to focus on lowering labour costs, SGC has introduced group-wide cuts in executive compensation while continuing to participate in furlough programmes and maximising employee efficiency.
SGC has outlined that it is estimated that drastic workforce steps would secure the company $50 million in cost savings during Q2 trade. The company will gain more savings with a $50 million reduction in capital spending by Q2.
Updating its full-year 2020 guidance, SGC expected community capital spending will be in the range of $210-240 million, compared to previous $300-330 million estimates.
SGC told investors that a $480 million revolving credit facility has been funded by the company to provide ‘maximum flexibility in difficult times.’
The technology group has detailed that the credit funds and their $200 million available cash would allow the company to recover more quickly and take advantage of potential opportunities.
CEO Barry Cottle of Scientific Games said: “We continue to reduce our costs so that we can position our Company to be an even stronger competitor as the industry begins to recover.
“We remain committed to providing our best in class products and services to our customers across lottery, iGaming, sports betting and land-based casinos while innovating for the future. The diversity of our business, serving customers across the industry and around the globe, gives us unique strength in these challenging times.”