Scientific Games Corporation (SGC) has published its Q1 trading update, reporting a stable corporate performance and trading in Q1 of 2021.
Scientific Games Corp. With a Report of a Strong Q1 in 2021
Publishing its Q1 trading update, Scientific Games Corporation (SGC) has registered a 1% increase in group revenues to $729 million compared to Q1 2020 ($725million), in line with the Nasdaq firm’s trading objectives.
The most significant revenue increase is in the group’s SciPlay brand with 28% and its Lottery division with 17%. SciPlay’s revenue increased from $118 million to $151 million. Digital revenue saw a 12% increase, from $77 million to $86 million. The lottery segment generated the most, $248 million. Meanwhile, SGC’s gaming unit recorded a significant drop of 23% ($244 million) in revenue, compared to Q1 2020 ($318 million) as the global situation continued to impact the industry. The pandemic brought a 5% decrease in revenue from the group’s overall operations.
Scientific Games president and CEO Barry Cottle stated that he is happy with the group’s progress in the first quarter. He said that despite the current global challenges, the team is focused, dedicated, and capable of building on the earnings from last year.
Cottle said: “We delivered another strong quarter, enabling us to return to growth on both the top and bottom lines.”
SGC recently announced that its OpenSports betting platform delivered to its sports betting clients over 50 million bets on the UK’s Grand National horse racing festival.
SGC Will Remain “Laser Focused” to Enhance Cash Flow
For the first quarter of 2021, SGC posted a net loss of $9 million, compared to the $155 million for the respective quarter in the previous year, which is a significant result, keeping in mind its gaming downturn due to the pandemic. However, the two quarters are not comparable because of the additional $91 million in goodwill impairment charges in Q1 2020.
Operating activities improved from $120 million a year ago to $123 million now due to improved operating results, which were partially offset by payments in the quarter on interest and an unfavorable change in working capital accounts. At the end of the Q1, SGC had $1.3 billion of cash and cash-equivalent, despite the $150 million the company voluntarily repaid on its revolving credit facility.
Cottle said that these results demonstrate the strength of the corporation’s franchises, engaging content, and platform. He stated that the Board and executive team work together to optimize the SGC’s portfolio and growth in key areas.
SGC Executive Vice President and CFO Michael Eklund said: “The team has stepped up to make meaningful progress on our key initiatives.”
He also said that the company would remain “laser-focused” towards growth and strengthen the balance sheet, efficiently operating and boosting cash flow. Eklund shared his excitement for the Scientific Games’ future, stating it will accelerate towards a higher level of development.