Scientific Games Reports Second Quarter 2019 Results

  • Post published:August 2, 2019
  • Post category:News / iGaming
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LAS VEGAS, Aug. 1, 2019 /PRNewswire/ — Scientific Games Corporation (NASDAQ: SGMS) (“Scientific Games,” “SGC” or the “Company”) today reported results for the second quarter ended June 30, 2019.

“We are pleased with the growth we are continuing to see across Lottery, Digital, and SciPlay while also stabilizing gaming operations driven by the successful launches of several new games. The second quarter really highlights the diversity of our business and the many avenues we have to generate revenue across the globe,” said Barry Cottle, President and Chief Executive Officer of Scientific Games. “The entire organization is laser focused on strengthening our core business and capturing market share in emerging digital markets while making our business more efficient. These key focus areas will allow us to deliver the greatest returns for our stakeholders, set ourselves up for profitable growth, and generate significant cash flow to continue on our deleveraging path.”

Michael Quartieri, Chief Financial Officer of Scientific Games, added, “This quarter, we paid down another $155 million in debt bringing our year to date total to $300 million, and the SciPlay IPO proceeds will continue to enable us to make substantial payments on our debt as we work toward our deleveraging goal.”

Key Highlights vs. Second Quarter 2018

  • Gaming operations – U.S. and Canadian revenue was flat sequentially driven by a $0.52 increase in average daily revenues from the prior quarter, while the installed base decreased by 902 units from the removal of older machines and the closure of a racino in the Northeast. Total gaming operations revenues decreased by $2 million sequentially as international operations revenue was slightly impacted, as anticipated, by the implementation of the £2 max bet limit in April.
  • Gaming machine sales – total new unit shipments in the U.S. and Canada decreased due to lower replacement units, while international units increased. The company launched the new Twinstar Wave XL cabinet on a for sale model with six themes and the entire library of content from the Twinstar J43.
  • Gaming systems revenue was down due to fewer Canadian systems launches.
  • Table games continued to grow with revenue up $3 million from the prior year to $62 million on continued strength in the business.
  • Lottery systems revenue was $24 million higher primarily related to equipment sales as part of a recent award of a 10-year sports betting contract in Turkey.
  • Instant products revenue was flat reflecting growth in international business offset by a decline domestically related to the anniversary of the Willy Wonkalinked game.
  • SciPlay revenue increased 18%, which was more than twice the rate of market growth. The growth was driven by increased monetization of paying players, with ARPDAU up 14% to $0.48.

Digital casino platform reliably processed over $9 billion in total wagers. The company was awarded platform of the year at the EGR 2019 B2B Awards for Open Gaming System (OGS) and Open Platform System (OPS). Currently launching mobile sports in Pennsylvania, Indiana

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Earnings Conference Call

Scientific Games executive leadership will host a conference call on Thursday, August 1, 2019, at 5:30 pm. EST to review the Company’s second quarter results. To access the call live via a listen-only webcast and presentation, please visit http://www.scientificgames.com/investors/events-presentations/ and click on the webcast link under the Investor Information section. To access the call by telephone, please dial: +1 (412) 317-5420 (U.S. and International) and ask to join the Scientific Games Corporation call. A replay of the webcast will be archived in the Investors section on www.scientificgames.com.

About Scientific Games

Scientific Games Corporation (NASDAQ: SGMS) is the world leader in offering customers a fully integrated portfolio of technology platforms, robust systems, engaging content and services.  The Company is the global leader in technology-based gaming systems, digital real-money gaming and sports betting platforms, table games, table products and instant games, and a leader in products, services and content for gaming, lottery and social gaming markets. Scientific Games delivers what customers and players value most: trusted security, creative entertaining content, operating efficiencies and innovative technology. For more information, please visit www.scientificgames.com, which is updated regularly with financial and other information about the Company.