GGRAsia – Sci Games Q3 Net Profit Up YoY, Helped By Video Game Industry


Sci Games Q3 net profit up year-on-year, helped by video game industry

Casino and online gaming equipment supplier Scientific Games Corp said on Tuesday that its third-quarter net profit was $ 182 million, compared with a net loss of $ 117 million in the period. ‘last year. Net income also increased sequentially by 67.0%.

The figure included contributions from the continuing operations of the company as well as from discontinued operations. Scientific Games is in the process of selling its lottery and sports betting business.

The company said in a U.S. filing that total revenue for the three months to September 30 was $ 824 million, down 6.4% sequentially from the $ 880 million in the second. trimester. Third quarter revenue increased 18.1% year-over-year.

The group’s consolidated quarterly adjusted profit before interest, taxes, depreciation and amortization (EBITDA) increased 41.3% year-over-year to $ 332 million from $ 235 million a year earlier. Adjusted EBITDA decreased 13.3% compared to the previous quarter.

In the gaming segment, including casino slots, electronic table games and systems, total revenue increased 46.8% year-on-year to $ 339 million, but down 7.6% sequentially.

Quarterly machinery sales generated $ 95 million, down 5.0% from the previous quarter, but surging more than a third in year-over-year terms,

Systems sales brought in US $ 52 million, stable sequentially, and an increase from US $ 43 million a year earlier, Scientific Games said. According to the company, tableware generated US $ 41 million, up both quarterly and from the prior period.

In the international market – including Asia-Pacific – the count of shipments of new machinery units was almost stable compared to the previous quarter at 1,780 units. By the third quarter of 2020, Scientific Games had shipped 1,887 units.

As of September 30, the company’s total debt was just under US $ 8.85 billion. The group said it had paid off $ 635 million in debt since October last year.

“In the past few months alone, we’ve made tremendous progress on our strategic pillars, delivering on our promises and rapidly advancing our vision to be the world’s leading cross-platform games company,” said Barry Cottle, president and chief executive officer of the group. , in the prepared remarks contained in the press release.

He added, “With the sale of our lottery and sports betting business, we are transforming our business, raising US $ 7 billion, which will significantly reduce the balance sheet’s debt and allow us to invest for growth. “

Quarterly revenue from SciPlay Corp, a digital operation majority-owned by Scientific Games – which also announced its results on Tuesday – fell 3.0% year-on-year to $ 146.6 million.

In July, Scientific Games offered to acquire the remaining 19% stake in SciPlay that it does not currently own.

Scientific games announced last week the acquisition of the Maltese company Authentic Gaming Ltd, a provider of live casino products for the iGaming space. The acquisition marked Scientific Games’ first foray into the live casino market and “significantly enhances the company’s product portfolio,” the company said at the time.

The deal came shortly after Scientific Games confirmed the sale of its lottery activity to Brookfield Business Partners LP, for a total consideration of US $ 6.05 billion. In September, the group also has sold its sports betting business – including its sports betting platform OpenBet – for US $ 1 billion in cash and US $ 200 million in shares of Endeavor Group Holdings Inc, a sports and entertainment company.

The two agreements were part of a company-wide strategic review announced in June by Scientific Games. The US-listed company said the move would allow the group to focus on its gaming, iGaming and SciPlay businesses.

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