Scientific Games secures 25% YoY revenue rise for Q3 2021

Scientific Games has posted a 25% year-on-year (YoY) rise in Q3 2021 revenue as the company praised its decision to sell off its lottery and sports betting business. The Las Vegas-based supplier recorded a total revenue of $539m (£399m) during the reporting period compared to $432m in Q3 2020. Breaking down the revenue into segments, the group’s gaming division returned $339m of the total revenue, up 47% YoY from $231m in Q3 2020 as land-based operations blossomed following the relaxation of Covid-19 restrictions. Similarly, the firm’s igaming division posted improved revenue YoY, growing 6% from $50m to $53m. Scientific Games said its US-derived igaming revenue leapt 109% YoY and that since Q3 2019, wagers processed through the company’s igaming platform had increased from $9bn to $16.9bn. Elsewhere, the SciPlay segment posted a small YoY downturn in revenue from $151m in 2020 to $147m in 2021 which Scientific Games said was a result of a “temporary event; isolated in Jackpot Party Casino”. The supplier noted it expected the division to return to growth in Q4. Elsewhere, EBITDA rose 74% YoY from $117m in Q3 2020 to $203m in Q3 2021 with an improved EBITDA margin of 38% compared to 27%. Barry Cottle, Scientific Games CEO, said the company had made significant strides in recent months as it pivots to become a content-led operation as he championed the sales of its lottery and sports betting divisions. He said: “In just the last few months we have made tremendous progress on our strategic pillars, delivering on our promises, and rapidly advancing our vision to be the leading cross-platform global game company. “With the sale of our lottery and sports betting businesses, we are transforming our company, raising $7bn which will significantly de-lever the balance sheet and enable us to invest for growth. “With our streamlined organisation we have all of the pieces in place, and are singularly focused on building games fully cross-platform. I want to thank all of our teams around the world for their hard work and commitment and for what they have enabled us to accomplish,” he added.