Scientific Games Corporation’s third-quarter results show that the company’ recovery from losses due to the Covid-19 pandemic is continuing.
The company reported a net loss of US$111 million in the three months ended September 30, improved from a loss of $198 million in the previous quarter on rising revenues and continued growth in its digital sectors.
Revenue climbed to $698 million in the third quarter, 18.4 percent down on the same period last year but up on the $539 in revenues reported in the second quarter.
Adjusted EBITDA grew from $121 million in Q2 to $235 million with the company highlighting growth in its lottery, SciPlay and digital businesses. Of those, SciPlay Adjusted EBITDA increased by 54 percent year-on-year to $49 million and digital Adjusted EBITDA by 50 percent to $25 million.
“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,” said Scientific Games Executive Vice President and CFO Michael Eklund.
“Looking ahead, our team will remain highly focused on driving operational efficiencies, further bolstering our liquidity and strengthening our balance sheet. My overarching focus is to improve the balance sheet through operational and business process improvements.”
Scientific Games also revealed another addition to its board of directors, with veteran Australian executive Hamish McLennan joining as an independent director following the recent sale by Ron Perelman’s MacAndrews & Forbes Inc. of its entire 34.9 percent stake in the company.
McLennan chairs several ASX-listed companies including digital advertising firm REA Group Limited, and media and entertainment company HT&E Limited.
In announcing the results, Scientific Games CEO Barry Cottle noted the optimism surrounding the company thanks to its new board lineup, with former Aristocrat Leisure CEO Jamie Odell taking over as executive chairman and former Aristocrat CFO Toni Korsanis as executive vice chairwoman.
(These) leaders will augment our focus on de-levering our balance sheet and will help the company prudently and thoughtfully shape our corporate strategy,” Cottle said.