The reduced supply by casino operators across the world as a result of the global pandemic has dampened Scientific Games’ (SG) performance during Q3 revenues fell to $698 million, an 18.3% decline on the $855 million reported in Q3 2019.
The majority of the disruptions were felt by the company’s gaming division, which SG stated had affected comparability to the prior year period.
Q3 gaming revenue dropped by 49% to $231 million, down from $454 million in 2019. According to the US tech company, these disruptions were driven by the continued reduced operations of casino operators in various jurisdictions globally.
The firm’s lottery segment saw revenue increase 10% to $241 million, up from $220 million, which has been attributed to domestic instant tickets and international product sales, as SciPlay surged 30% from $116 million to $151 million.
Barry Cottle, President and CEO, said: “As a result of our team’s focus on our strategy, our diverse portfolio and our commitment to cost management, we delivered strong cash flow in the third quarter. I really am excited around all the great games, products and solutions we have to help our partners navigate the current environment and provide innovative solutions for the future.
“I’d also like to welcome the proven industry leaders to our board who will augment our focus on de-levering our balance sheet and will help the company prudently and thoughtfully shape our corporate strategy.”
SG recorded a group-wide net loss of $111 million, compared to net income of $18 million year-on-year due to lower revenue and the effects of COVID-19. Results were also impacted by a $24 million loss on remeasurement of debt compared to a $19 million gain in the prior year period.
Michael Eklund, Executive Vice President and CFO, added: “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.
“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.”