Scientific Games Corporation (SGC) reported positive commercial improvements across the board as it moves forward with plans to sell the technology company’s lottery and sports betting businesses, which it announced earlier this year.
SGC reported $880 million in consolidated group revenues for the second quarter, up 63 percent from $539 million in the same quarter last year.
The COVID-19 commercial recovery of SGC’s Gaming business (machines and gaming activities) accounted for the majority of the period’s growth, with revenues increasing by 300 percent to $367 million (Q2 2020: $97 million).
The rebound of the company’s Gaming segment was aided by record results from the SGC Lottery and Digital units, which posted period revenues of $266 million (+27 percent) and $93 million (+27 percent), respectively.
SGC Lottery highlighted excellent retail take-up of its instant lottery products, while SGC Digital cited a record sports betting performance as well as the ‘strength of its own content’ offered to online gaming partners as reasons for its success.
SGC reported a period consolidated AEBITDA of $383 million, up 217 percent from $121 million in the second quarter of 2019.
SGC maintained a ‘disciplined cost control and concentration on balance sheet management,’ resulting in a net cash income of $113 million, reversing a $200 million loss in the second quarter of 2020.
Maintaining its fiscal responsibilities, SGC lowered its long-term debt holdings from $9.3 billion to $9 billion during period trade.
SGC leadership emphasised the value of the company’s lottery and betting units, which will be put up for sale as part of the company’s’strategic deleveraging’ as it transitions into a single vertical organisation.
Expanded game creation capabilities
SGC provided updates on its transformation goals, including how it expanded its game creation capabilities by acquiring Lightning Box and Koukoi Games’ assets.
Scientific Games’ President and Chief Executive Officer, Barry Cottle, 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.”