US – Lottery, SciPlay and digital all enjoy double-digit growth for ScientificBy Phil - 10 May 2021
Lottery, SciPlay and digital businesses all delivered double-digit revenue growth for Scientific as the company successfully drove customer engagement with the breadth of its portfolio and proven content. Gaming revenue continued to be impacted by casino restrictions and closures, particularly in Europe.
First quarter consolidated revenue was $729m compared to $725m, up one per cent compared to the prior year period.
Net loss was $9m compared to $155m in the prior year period primarily due to Gaming business segment receivable credit allowances, inventory and goodwill impairment charges which totaled $91m in the prior year period. Lottery revenue increased 17 per cent and AEBITDA increased 53 per cent compared to the prior year driven by record US instant game sales, large Powerball and Mega Millions jackpots as well as strength in Europe.
Lottery Instant product revenue was $26m higher than the prior year primarily driven by performance in states under the Scientific Games Enhanced Partnership program.
Digital revenue increased 12 per cent and AEBITDA grew 26 per cent from the prior year driven by iGaming with record results in the quarter led by our original content, our successful launch in Michigan and strength in Europe. SciPlay revenue increased 28 per cent and AEBITDA increased 32 per cent from the prior year driven by continued growth in social casino games that outpaced the market and record payer conversion. Gaming revenue of $244m was impacted by COVID-19 restrictions for casinos globally. AEBITDA grew 13 per cent from the prior year driven by a more favourable product mix, cost actions, and certain credit receivable allowance and inventory charges that impacted the prior year.
Barry Cottle, President and Chief Executive Officer of Scientific Games, said: “I am extremely pleased with our progress this quarter. Despite the continued challenges, our teams’ dedication and focus enabled us to build on our gains from last year. We delivered another strong quarter, enabling us to return to growth on both the top and bottom lines. Our new Gaming strategy and product roadmap continues to have success and our Lottery, SciPlay and Digital businesses delivered strong growth in the quarter. Our results demonstrate the strength of our content and franchises, engaging players on any platform they want to play. The executive team and our Board are continuing to work together and are making great progress as we look to optimize our portfolio, deleverage our balance sheet and capitalize on key areas of growth in order to unlock value for our shareholders.”
Michael Eklund, Executive Vice President and Chief Financial Officer of Scientific Games, added: “The team has really stepped up to make meaningful progress on our key initiatives. We remain laser focused on delivering revenue and AEBITDA growth, and strengthening our balance sheet. Our continued focus on operational efficiency is enhancing our cash flows. We are executing at a high level and I could not be more excited about the path forward for Scientific Games.”