Scientific Games Corporation has delivered a downbeat set of Q3 2020 results this week, with COVID driving down revenue to $698m versus $855m year-on-year.
In its statement, the company described trading as being adversely impacted by the COVID-19 disruptions, primarily in the Gaming business unit during the quarter, affecting comparability to the prior year period.
However, its Lottery, SciPlay and Digital businesses grew in the quarter, highlighting, said SG, the strategic investments it has made in the digital space and the breadth of its portfolio. All three increased AEBITDA by 10% or more with its Digital business up nearly 50% and SciPlay up over 50% from the prior year.
Net loss for the quarter was $111m compared to net income of $18m year-on-year due to lower revenue and the effects of COVID-19. Results were also impacted by a $24m loss on re-measurement of debt compared to a $19m gain in the prior year period.
More positively, the firm’s free cash flow increased $11m from the prior year to $62m, driven primarily by working capital improvements.
Barry Cottle, President and CEO, said: “As a result of our team’s focus on our strategy, our diverse portfolio and our commitment to cost management, we delivered strong cash flow in the third quarter. I really am excited around all the great games, products and solutions we have to help our partners navigate the current environment and provide innovative solutions for the future.
“I’d also like to welcome the proven industry leaders to our board who will augment our focus on de-levering our balance sheet and will help the company prudently and thoughtfully shape our corporate strategy.”
Michael Eklund, Executive Vice President and CFO, added: “The team did a great job driving cash flow improvements this quarter, and we will continue to diligently evaluate additional opportunities to increase cash flow and de-lever.
“Looking ahead, our team will remain highly focused on driving operational efficiencies, further bolstering our liquidity and strengthening our balance sheet. My overarching focus is to improve the balance sheet through operational and business process improvements.”
