Following a period of recurring closures and financial disruptions, Scientific Games reported a strong second quarter with over 60% growth compared to 2020.
Divestitures of Lottery and Sports Betting Businesses go as Planned
Scientific Games Corporation (SGC) reported a strong second quarter with a consolidated annual revenue increase of 63% and strong sequential growth across all businesses, according to the company’s figures released on August 9. The operator also highlighted that it is making noticeable progress with the divestiture of its lottery and sports betting businesses.
Second-quarter consolidated revenue experienced a 63% rise from $539 million last year to $880 million in 2Q2021. SGC’s gaming business posted 300% growth compared to the same period in 2020 and 50% sequential growth due to the recovery of the company’s gaming unit including machines and gaming operations. The increase in revenue could also be attributed to the record figures in the US, and a rebound in the UK and Europe.
Lottery and Digital Businesses Up by 27%
SGC Lottery and Digital unit grew by 27% each in the second quarter of the year to stand at $266 million and $93 million respectively. The Lottery segment experienced strong demand in its instant lottery products from retail customers, whilst the record sports betting performance as well as the ‘strength of its original content’ supplied to online gambling partners boosted SGC Digital performance.
“I am very pleased that we continue to make tremendous progress on all of our key strategic pillars while also driving significant growth in the quarter. We have emerged from the pandemic a much stronger company with significant momentum. All of our businesses grew sequentially on both the top and bottom lines in the quarter. Gaming delivered its highest revenue quarter since the fourth quarter of 2019, Lottery and Digital achieved record results and SciPlay delivered its second-highest revenue quarter in its history.”Barry Cottle, president and CEO, Scientific Games
Cottle added that the company will thrive to become a leading cross-platform global game company focusing on content and digital markets. He concluded that SGC is rapidly transforming itself and has a bright future ahead.
Net income in the second quarter of 2021 reached went up by 157% to reach $113 million compared to the prior-year period when it reported a loss of $198m. The surge was due to a strong quarter of the Gaming business segment, which previously suffered from Covid-19 disruptions. In addition, the acquisition of SportCast brought in $63 million of non-cash gain. Last year, there were also austerity measures in place due to the complicated Covid-19 situation.