SGC’s Q1 Report of Stable Growth
Nevada-based gaming and lottery industries giant has published the first quarterly report of the year. COVID-19 related restrictions and continue to have a major impact on the industry. However, the Scientific Games managed to maintain steady performance.
Scientific Games Corporation’s objectives for the first 4 months of the year were met – the company recorded 1% growth in group profit, which, considering the situation is a positive start of the year.
SGC’s subsidiary company, digital games developer and publisher SciPlay has registered 28% income growth (from 118mln USD to 151mln USD). This is in line with the gambling and gaming trends of the lockdown year. Digital commerce indicators are also showing promising results with an increase in 9mln USD (12%)
Company’s Lottery department is the second in terms of revenue growth (17%). The above mentioned 2 units that registered rapid growth are exceptions among the gaming products of the Scientific Games Corporation. Companies gaming brands’ revenue have decreased by 74mln USD: -23% compared to the same period of the last year.
Corporation’s gaming-related operations overall have declined due to the casino restrictions set during the peak of the pandemic.
The current President and CEO at Scientific Games, Mr. Barry Cottle notes:
“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 continue to have success and our Lottery, SciPlay, and Digital businesses delivered strong growth in the quarter.”
Mr. Cottle also stresses that their results show the exceptional quality of the company’s products, which engage players across all platforms. The corporation’s leadership is working on updating their product portfolio and further enhance the strengths of SGB.
Scientific Games Corporation’s net operating loss (NOL) made 9mln USD which is major progress compared to the NOL of the Q1 of the last year. The major part of the 155mln NOL of the last year occurred due to goodwill impairment fees.
The better performance results improved the cash flow of the corporation that increased by 3mln USD. Unfortunately for the company, an important indicator like net debt decreased by 187mln USD.
Earnings Before Interest, Taxes, Depreciation and Amortization metric that helps to assess the company’s operating performance shows that SGC’s departments presented positive earnings results. EBITDA was increased by 70mln USD compared to 2020.
Corporation’s available liquidity that indicates the company’s ability to convert its assets into cash without being affected by external factors was calculated to be 1.3bln USD.
Executive VP and CFO of Scientific Games, Mr. Michael Eklund is also excited about the progress they made:
“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.”