Scientific Games Corp has reported a net loss of US$111 million in the three months to 30 September 2020, improved from a loss of US$198 million in the previous quarter on rising revenues and continued growth in its digital sectors.
Revenue climbed to US$698 million in 3Q20, still 18.4% down on the same period last year but up on the US$539 in revenues reported in the second quarter.
Adjusted EBITDA grew from US$121 million in 2Q20 to US$235 million with the company highlighting growth in its lottery, SciPlay and digital businesses. Of those, SciPlay Adjusted EBITDA increased by 54% year-on-year to US$49 million and digital Adjusted EBITDA by 50% to US$25 million.
However, gaming revenue decreased by 49% on COVID-19 disruptions to global casino operations.
“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,” said Scientific Games Executive Vice President and CFO, Michael Eklund.
“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.”
Scientific Games also revealed the latest addition to its board of directors, with veteran Australian executive Hamish McLennan joining as an independent director following the recent sale by Ron Perelman’s MacAndrews & Forbes Inc of its entire 34.9% stake in the company.
McLennan chairs several ASX-listed companies including digital advertising firm REA Group Limited, and media and entertainment company HT&E Limited.
He is also Deputy Chairman of equity fund Magellan Financial Group, Chairman of Rugby Australia Limited and a director of global digital claims solutions business Claim Central Consolidated.
Scientific Games recently announced former Aristocrat CEO Jamie Odell and CFO Toni Korsanos as its new Executive Chairman and Executive Vice Chairman respectively.
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