Scientific Games posts 11.7% revenue slump in Q4
Supplier giant falls victim to Covid-19 impacts as gaming revenue plummets with lottery and SciPlay a silver lining
Scientific Games posted a 11.7% year-on-year (YoY) decrease in Q4 revenue despite recording growth across three of its four core pillars.
The Las Vegas-based supplier reported fourth quarter revenue of $762m, down from $863m in 2019.
The decrease was primarily caused by the group’s 36% fall in gaming revenue, from $445m in 2019 to $286m in 2020.
Covid-19 restrictions on land-based revenue streams were cited as the core reason for the decrease.
Despite the drop-off in gaming revenue, Scientific Games’ lottery, SciPlay and digital arms all posted YoY revenue increases.
Lottery revenue grew 10% to $256m and Splay climbed 30% to $147m, while digital rose slightly by 1% to $73m.
Elsewhere, Q4 EBITDA fell from $328m in 2019 to $244m in 2020 as losses increased from $37m to $84m.
For full-year 2020, Scientific Games also posted major decreases in revenue and EBITDA coupled with increased net losses.
FY 2020 revenue was recorded at $2.7bn, down from $3.4bn in 2019, while EBITDA fell to $800m from $1.3bn.
Net losses grew to $548m from $118m in 2019 thanks to lower revenue and increased restructuring and goodwill costs.
Barry Cottle, Scientific Games CEO, said: “While 2020 certainly had unforeseen challenges, I couldn’t be more proud of our team for successfully navigating through them.
“The strong execution, coupled with the diversity of our business, enabled positive cash flow. As we start off the year, I am truly excited about the team, products and game franchises that should enable share gains, deal wins and opportunities to enter new genres.
“The executive team and our board are working purposefully to transform our company, capitalise on the evolving industry trends and deliver outsized returns to our shareholders,” he added.
Scientific Games’ share price was up 8.2% to $50.66 since yesterday.