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cientific Games published Tuesday its third-quarter report, showing a consolidated revenue from continuing operations of $539 million, up 25% in a year-over-year comparison.
The company reported a gaming revenue of $339 million, up 47% compared to 2020, which the SG described as “driven by strong growth in gaming operations due to an increase in our premium installed base as well as growth in Game Sales and our Table Game Business”.
Net income from continuing operations was $100 million, compared to a net loss of $187 million in the prior year due to a $181 million income tax benefit “as a result of the partial reversal of our valuation allowance on deferred taxes and strong revenues in the Gaming business segment, which were significantly impacted by COVID-19 disruptions in the prior year period”, the company explained.
AEBITDA grew 123% from the prior year, in an increase directly related to revenues and lower alliance for credit loss and inventory valuation charges. Net cash provided by operating activities from continuing operations was $89 million compared to $32 million in the prior year period on improved operating results, and $187 million on the combined basis.
As to the company’s gaming operations revenue, SG attributed its gain to its “new product roadmap including our new game launches as well as the growing footprint of our Kascada cabinet”.
“Our North American premium installed base grew for the 5th consecutive quarter, which translates to a total increase of 20% over such period, with the premium installed base now at 42% of the total installed base”, Scientific Games stated.
iGaming revenue increased 6% and AEBITDA grew 13% from the prior year period. U.S revenue grew 109% and U.S. share increased 200bps to 27% in the quarter.
Scientific Games announced on October 27 that it had entered into a definitive agreement to sell its Lottery business to Brookfield Business Partners for a total consideration of $6.05 billion. This represents an accelerated strategy and path to de-levering. The company said in June that it would explore divesting its lotteries and sports betting units as a part of a plan to reign in debt. Endeavor Group Holdings Inc. agreed in September to pay $1.2 billion for its betting business.
During a conference call held after the publication of this past quarter’s numbers, Barry Cottle, President and CEO of Scientific Games 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 $7 billion which will significantly de-lever the balance sheet and enable us to invest for growth. With our streamlined organization we have all of the pieces in place, and are singularly focused on building games fully cross-platform. Operationally we also made great strides in the quarter, further cementing the turnaround at our Gaming business, strengthening our leadership position in iGaming and making great progress expanding in Casual at SciPlay”, he added.
Connie James, Executive Vice President and CFO of SG, commented: “With the announced sale of Lottery and Sports Betting businesses as well as organic investments and key acquisitions like Authentic, Lightning Box and Koukoi, you are quickly getting to see the shape as well as the pace and agility of our new organization”.
“The divestitures put us on a clearly defined path to materially de-lever while providing us with the ability to invest. Our momentum continued this quarter with strong top and bottom line growth and with strong quarterly cash flow as the teams continued to be laser-focused on productivity. We are seeing our Company come together and coalesce around a high-performance culture that embraces our bright future as we pursue our new vision and I can’t thank our employees enough for their dedication and enthusiasm.”
Original article: https://www.yogonet.com/international//noticias/2021/11/10/60150-scientific-games-reports-25por_ciento-growth-in-revenue-reaching-539m-in-q3
