Scientific Games posts flat revenue in 19Q2

Scientific Games stand

Scientific Games posted second-quarter revenue of $845 million in the second quarter of 2019, with growth in lottery, SciPlay and Digital offset by a decline in gaming revenue on fewer casino openings and system launches, and lower replacement sales. 

The results were consistent with revenue recorded in the second quarter of 2018. However, net loss widened to $75 million in 19Q2, compared to only $6 million in the prior-year period.

Scientific Games said this was primarily driven by a $60 million debt financing expense and a $3 million loss on remeasurement of Euro-denominated debt.

Consolidated Adjusted EBITDA decreased one percent to $335 million, driven by the decline in gaming revenue. 

However, the company posted strong results from its lottery, digital and SciPlay business units. 

Lottery systems revenue increased by $24 million in 19Q2, primarily due to equipment sales as part of a recent award of 10-year sports betting contract in Turkey.

SciPlay revenue increased 18 percent in the quarter, which was more than twice the rate of market growth, driven by increased monetization of paying players.

Its digital casino platform processed over $9 billion in total wagers in the quarter, it said. 

“We are pleased with the growth we are continuing to see across Lottery, Digital, and SciPlay while also stabilizing gaming operations driven by the successful launches of several new games. 

The second quarter really highlights the diversity of our business and the many avenues we have to generate revenue across the globe,” said Barry Cottle, president, and chief executive officer of Scientific Games. 

“The entire organization is laser-focused on strengthening our core business and capturing market share in emerging digital markets while making our business more efficient. These key focus areas will allow us to deliver the greatest returns for our stakeholders, set ourselves up for profitable growth, and generate significant cash flow to continue on our deleveraging path.”

Michael Quartieri, chief financial officer of Scientific Games, added, “This quarter, we paid down another $155 million in debt bringing our year to date total to $300 million, and the SciPlay IPO proceeds will continue to enable us to make substantial payments on our debt as we work toward our deleveraging goal.”

SHARE
Previous articleSasebo deepening engagement with IR operators
Next articleAsia Live Tech double shortlisted at GGA 2019

Related Articles

Changing face of casino service

The role of casino employees, who play a central tenet in ensuring guest satisfaction, has had to pivot due to Covid-19 from that of being the perfect host to enforcing strict health and safety guidelines.
Macau casino workers to wear mask until March

Suppliers rush to adapt to Covid realities

While the past six months have undoubtedly been devastating for the gaming industry, in just a short space of time suppliers have shown their ability to adapt and react, releasing new products for the new reality and refocusing business models. 

Facial recognition technology casts eye beyond security

Advances in facial recognition technology will see new and widespread applications that revolutionize the way casino operators interact with their players.  Facial recognition is not new to the casino sector, but it has traditionally been restricted to security teams, primarily as an aid to keeping barred individuals off a property.  But the technology has developed […]
SG launches Kascada cabinet

Scientific Games launches Kascada cabinet

Scientific Games has introduced the Kascada cabinet, which is the next generation of the top-selling TwinStar J43 cabinet.
Bigger things may be in the works at SG

Bigger things may be in the works at SG: Union Gaming

Scientific Games may have “bigger things” in the works, including a strategic transaction, after announcing a management refresh on Monday, according to a note from Union Gaming.
SG appoints former Aristocrat execs to board after investor changes

SG appoints former Aristocrat execs to board after investor changes

Scientific Games said it has appointed former Aristocrat CEO Jamie Odell as its executive chair and former Chief Financial Officer Toni Korsanos as executive vice chair in a boardroom reshuffle after a change in shareholders.
SG introduces GM Atlas and ShuffleStar Continuous

SG introduces GM Atlas and ShuffleStar Continuous

GM Atlas, Scientific Games’ next-level progressive platform, ties together all of the best functions from the previous Game Manager 1 and Game Manager 2 platforms and adds much more.
slot-machines

More player space on casino floors likely to become permanent

The increased space for players on gaming floors due to Covid-19 has been welcomed by clients and is likely to be a trend that is here to stay, executives from three of the world’s largest suppliers said on a panel at the Australasian Gaming Expo seminars.

Scientific Games reports US$198 million net loss for Q2

Gaming industry supplier Scientific Games reported on Thursday its financial results for the quarter ending June 30, noting that the firm suffered a US$198 million net loss in the period. Total revenues for the quarter amounted to US$539 million. The statement explained, “the company’s gaming and lottery revenue was negatively impacted by the Covid-19 disruptions […]

Ronald Perelman mulls sale of Scientific Games stake

Billionaire Ronald Perelman, a world-renown investor, and the largest shareholder of gaming supplier Scientific Games is considering a possible sale of his 39 percent stake in the company. According to a report from Bloomberg, this would be part of Perelman’s efforts to reposition his investment portfolio in the wake of the coronavirus, which was “pinched […]