SciPlay Corporation generated $158m, up five per cent, in the first quarter from the prior year period, as a result of an increase in average monthly paying users due to a higher player conversion rate during the period.
Net income was $32m compared to $37.9m in the prior year period due to an increase in operating expenses, primarily driven by a $4.6m increase in user acquisition spend, a $3.5m increase in salaries, benefits and stock-based compensation, and a $1.3m increase in depreciation and amortization, partially offset by a five per cent increase in revenue.
Josh Wilson, Chief Executive Officer of SciPlay, said: “We are successfully executing on the plan we had laid out, reporting another exceedingly strong quarter. We are benefiting from our ongoing investments in key areas and enjoying strong momentum across our growing businesses. Alictus’ integration is proceeding very well with the team in Turkey releasing two new games in the first quarter of 2022, with one of them achieving #1 on Google Play and #5 on iOS. Likewise, Project All-Star is driving excellent engagement and monetization results across our largest games. Quick Hit generated a quarterly record while the team at Gold Fish continues its momentum, posting a sixth consecutive quarterly record revenue. As we plan for the future, we could not be more excited about the opportunity ahead.
“We maintained a record payer conversion ratio of 8.9 per cent and importantly, delivered sequential growth in MPUs and MAUs, the first time in 6 quarters. Our continued investments in our technology, our talent and our players’ experience will allow us to deliver continued growth and shareholder value. In addition, we expect to further enhance shareholder value with our newly authorized two-year share repurchase plan of up to $60 million. This reinforces our commitment to shareholder returns. We are looking forward to seeing our shareholders at our inaugural investor day on May 17th where we will provide an update on our strategy and the path forward.”
Daniel O’Quinn, Interim Chief Financial Officer of SciPlay, added: “This was another excellent quarter with SciPlay generating its second strongest quarterly revenue, only behind the second quarter of 2020, which benefited from COVID related closures. Total revenues increased five per cent year over year, growing well ahead of the industry. While Alictus performed well in the quarter, our focus remains on generating sustainable organic growth. Investments in key initiatives are positively impacting engagement and monetization metrics and our business continues to be highly cash generative. Our balance sheet remains very strong with close to $300m in cash and cash equivalents, even after the purchase of Alictus. We remain focused on driving profitable growth and delivering enhanced value for shareholders.”