Scientific Games digital revenue rises 12% in Q1

Scientific Games’ digital division reported a 12% year-on-year increase in revenue during the first quarter of 2021 to $86m (£60.8m). Company-wide gaming revenue slumped 23% in Q1 to $244m due to Covid-19 restrictions impacting the supplier’s land-based casino partners. The Las-Vegas headquartered company reported a 28% rise in revenue within its SciPlay operating segment during Q1, with revenue increasing to $151m, buoyed in part by continued growth in social casino gaming. Revenue from Scientific Games’ lottery operations increased 17% to $248m during the reporting period driven primarily by record US instant game sales, large Powerball and Mega Millions jackpots and European growth. Lottery instant product revenue increased by $26m year-on-year due to sales performance in states covered by the Scientific Games Enhanced Partnership programme. Overall group revenue for Q1 came in flat at 1% to $729m from a Q1 2020 high of $725m. The firm’s losses narrowed from a loss of $155m in Q1 of last year to just $9m in the same period of 2021. Company consolidated adjusted EBITDA increased by $70m during Q1 to $270m. Net cash provided by operational activities amounted to $123m, while free cash flow jumped $25m to $80m over the same period. Available liquidity amounted to $1.3bn in Q1, with Scientific Games choosing to repay $150m down on its revolving credit facility. Scientific Games president and CEO Barry Cottle said he was “extremely pleased” by the suppliers’ progress during the quarter, despite the continued headwinds created by the Covid-19 pandemic. “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,” said Cottle. “Our new gaming strategy and product roadmap continues to have success and our lottery, SciPlay and digital businesses delivered strong growth in the quarter. “The executive team and our board are continuing to work together and are making great progress as we look to optimise our portfolio, deleverage our balance sheet and capitalise on key areas of growth in order to unlock value for our shareholders,” Cottle added.