Scientific Games Corp reported a loss of US$198 million for the three months to 30 June 2020, impacted by COVID-19 and the subsequent closure of casinos in jurisdictions around the world.
But the company was still able to maintain positive Adjusted EBITDA of US$121 million for the quarter thanks to strong growth in its SciPlay and Digital segments.
While group-wide loss widened from US$75 million in 2Q19 on a 36.2% decline in revenue to US$539 million, iGaming continued to show strength with SciPlay – the company’s online gaming development arm – reporting a 41% increase in revenue to US$166 million and 80% uptick in Adjusted EBITDA to US$60 million.
Likewise, Scientific Games’ digital segment saw revenue grow 6% to US$73 million and Adjusted EBITDA by 67% to US$20 million.
By comparison, gaming revenue fell 79% to US$91 million and lottery revenue by 10% to US$209 million.
Notably, Scientific Games said it had reduced net cash outflow from an anticipated range of between US$70 million and US$90 million to just US$16 million on better than expected collections and better business performance in certain segments.
“I’m very proud of how we are navigating the current environment, as evidenced by our strong cost containment and cash management, which allowed us to deliver better than expected cash flow for the quarter,” said Barry Cottle, President and Chief Executive Officer of Scientific Games.
“This is a testament to our team’s ability to effectively manage our business in the short term and maintain our strong customer relationships so we are set up for success as the economy begins to reopen.
“The diversity of our businesses and our position on the forefront of digital gaming were critical to allow us to successfully navigate the worst of this environment. We have the right team coupled with the best products across both land-based and mobile gaming to position us for future growth.”
The company said it has available liquidity, including SciPlay, of US$943 million as of quarter’s end following the successful completion of a US$550 million private notes offering.