SG sees igaming and lottery growth offset by gaming declines in Q3
Revenue for the three months ended 30 September fell to $698m (£535.8m/€594.1m), though this represented a 29.5% rise from the second quarter, in which the supplier was hit hard by the novel coronavirus (Covid-19) pandemic.
The year-on-year decline was down to its land-based content business, SG Gaming, for which revenue declined 49.1% to $231m.
Scientific Games noted that the bulk of revenue came from regional and tribal properties across the US. While these customers were still subject to Covid-19 restrictions, such as limits on the number of gaming spots on the casino floor, they were recovering quicker than destination markets such as Las Vegas, it said.
Gaming’s decline meant that SG Lottery’s revenue of $241m, up 9.5%, was the main source of revenue during the quarter. With retail products usually sold in retailers that remained open throughout Covid-19 lockdowns, the division was largely unaffected by the pandemic, with sales in Italy and Turkey particularly strong.
Its social gaming arm SciPlay, meanwhile, saw revenue rise 30.2% to $151m, with average monthly actives standing at 7.3m, and daily actives 2.6m, during the quarter. SciPlay’s free-to-play offering was bolstered further by the acquisition of Come2Play, announced in June, which saw it expand into the rapidly growing causal gaming sector.
Finally SG Digital revenue was up 15.4% at $75m, in a period that saw the division’s igaming revenue from New Jersey double year-on-year. The quarter saw the division sign up a number of high profile clients, including Hard Rock and Betsson, as well as extending ongoing partnerships with Flutter Entertainment and Wynn Resorts.
It also expanded its product offering through deals with the likes of NetEnt, Big Time Gaming, and SportCaller.
“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,” Scientific Games executive vice president and chief financial officer Michael Eklund commented.
Chief executive Barry Cottle added: “As a result of our team’s focus on our strategy, our diverse portfolio and our commitment to cost management, we delivered strong cash flow in the third quarter. I really am excited around all the great games, products and solutions we have to help our partners navigate the current environment and provide innovative solutions for the future.”