Magazine

Scientific Games Post Positive First Quarter 2021 Results


LAS VEGAS, May 10, 2021 /PRNewswire/ — Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games,” “SGC” or the “Company”) today reported results for the first quarter ended March 31, 2021.

Barry Cottle, President and Chief Executive Officer of Scientific Games, said, “I am extremely pleased with our progress this quarter. Despite the continued challenges, our teams’ dedication and focus enabled us to build on our gains from last year. We delivered another strong quarter, enabling us to return to growth on both the top and bottom lines. Our new Gaming strategy and product roadmap continues to have success and our Lottery, SciPlay and Digital businesses delivered strong growth in the quarter. Our results demonstrate the strength of our content and franchises, engaging players on any platform they want to play. The executive team and our Board are continuing to work together and are making great progress as we look to optimize our portfolio, deleverage our balance sheet and capitalize on key areas of growth in order to unlock value for our shareholders.”

Michael Eklund, Executive Vice President and Chief Financial Officer of Scientific Games, added, “The team has really stepped up to make meaningful progress on our key initiatives. We remain laser focused on delivering revenue and AEBITDA growth, and strengthening our balance sheet. Our continued focus on operational efficiency is enhancing our cash flows. We are executing at a high level and I could not be more excited about the path forward for Scientific Games.”

First Quarter 2021 Financial Highlights:

  • First quarter consolidated revenue was $729 million compared to $725 million, up 1% compared to the prior year period. Our Lottery, SciPlay and Digital businesses delivered double-digit revenue growth as we drove customer engagement with the breadth of our portfolio and proven content. Gaming revenue continued to be impacted by casino restrictions and closures, particularly in Europe.
  • Net loss was $9 million compared to $155 million in the prior year period primarily due to Gaming business segment receivable credit allowances, inventory and goodwill impairment charges which totaled $91 million in the prior year period.
  • Consolidated AEBITDA, a non-GAAP financial measure defined below, was $270 million compared to $200 million, up 35% as compared to the prior year period, driven by double-digit AEBITDA growth across all segments.
  • Net cash provided by operating activities was $123 million compared to $120 million a year ago primarily driven by improved operating results, partially offset by an unfavorable change in working capital accounts and the timing of cash interest payments.
  • Free cash flow, a non-GAAP financial measure defined below, increased $25 million from the prior year period to $80 million.
  • Available liquidity, including SciPlay, at quarter-end was $1.3 billion. Subsequent to quarter-end, the Company made a $150 million voluntary repayment on SGI’s revolving credit facility.

Key Highlights

  • Lottery revenue increased 17% and AEBITDA increased 53% compared to the prior year driven by record U.S. instant game sales, large Powerball and Mega Millions jackpots as well as strength in Europe.
  • Lottery Instant product revenue was $26 million higher than the prior year primarily driven by performance in states under the Scientific Games Enhanced Partnership program.
  • Digital revenue increased 12% and AEBITDA grew 26% from the prior year driven by iGaming with record results in the quarter led by our original content, our successful launch in Michigan and strength in Europe.
  • SciPlay revenue increased 28% and AEBITDA increased 32% from the prior year driven by continued growth in social casino games that outpaced the market and record payer conversion.
  • Gaming revenue of $244 million was impacted by COVID-19 restrictions for casinos globally. AEBITDA grew 13% from the prior year driven by a more favorable product mix, cost actions, and certain credit receivable allowance and inventory charges that impacted the prior year.
  • Gaming Operations revenue declined 5% from the prior year as casino capacity restrictions persist. North America Gaming Operations revenue improved on a sequential basis and we expect new cabinet launches to support growth as restrictions ease.

Please click here for full report.



Source link

Related Articles

Back to top button