Scientific Games Reports Third Quarter Earnings

Scientific Games Corporation declared a reduction in earnings for the third quarter of 2020. The firm’s income dropped by 18.4% compared to the same period the previous year. This dip was primarily attributed to a substantial decrease in their gaming sector, which was partially balanced by growth in their lottery, digital, and social gaming division, SciPlay.

Despite the year-on-year decrease, revenue for the third quarter reached $698 million. This signifies a 29.5% rise compared to the second quarter, which was heavily affected by the COVID-19 pandemic.

The company’s land-based content business, SG Gaming, encountered a steep decline in income, falling by 49.1% to $231 million. This downturn was attributed to the impact of COVID-19 restrictions on regional and tribal properties across the United States. While these properties are recovering at a faster pace than destination markets like Las Vegas, they are still facing limitations such as reduced capacity on casino floors.

Despite the difficulties in the gaming sector, Scientific Games’ lottery division, SG Lottery, generated the highest revenue for the quarter, reaching $241 million, representing a 9.5% increase. The lottery division was largely unaffected by the pandemic, as retail lottery products are typically sold in stores that remained open during lockdowns. Sales were particularly strong in Italy and Turkey.

SciPlays social gaming branch experienced a significant surge in income, rising by 30.2% to $151 million. They also boasted a substantial player base, with an average of 7.3 million individuals participating monthly and 2.6 million engaging daily. Furthermore, they acquired a firm named Come2Play, which facilitated their entry into the popular casual gaming sector.

Their other division, SG Digital, also performed well, with revenue increasing by 15.4% to $75 million. They witnessed a doubling of their online gambling revenue in New Jersey compared to the previous year. They also secured partnerships with prominent entities like Hard Rock and Betsson, and expanded their collaborations with Flutter Entertainment and Wynn Resorts.

They also introduced new offerings through collaborations with companies such as NetEnt, Big Time Gaming, and SportCaller.

The company’s chief executive, Michael Eklund, expressed satisfaction with their progress in enhancing cash flow and their pursuit of additional avenues for revenue generation.

The CEO, Barry Cottle, shared a similar sentiment, highlighting the robust cash flow attributed to their strategic approach, diverse business portfolio, and emphasis on prudent spending. He expressed enthusiasm for their new games, products, and solutions, designed to support their partners during challenging times and foster future growth.

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