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Scientific Games posts flat revenue in 19Q2

Scientific Games posted second-quarter revenue of $845 million in the second quarter of 2019, with growth in lottery, SciPlay and Digital offset by a decline in gaming revenue on fewer casino openings and system launches, and lower replacement sales. 

The results were consistent with revenue recorded in the second quarter of 2018. However, net loss widened to $75 million in 19Q2, compared to only $6 million in the prior-year period.

Scientific Games said this was primarily driven by a $60 million debt financing expense and a $3 million loss on remeasurement of Euro-denominated debt.

Consolidated Adjusted EBITDA decreased one percent to $335 million, driven by the decline in gaming revenue. 

However, the company posted strong results from its lottery, digital and SciPlay business units. 

Lottery systems revenue increased by $24 million in 19Q2, primarily due to equipment sales as part of a recent award of 10-year sports betting contract in Turkey.

SciPlay revenue increased 18 percent in the quarter, which was more than twice the rate of market growth, driven by increased monetization of paying players.

Its digital casino platform processed over $9 billion in total wagers in the quarter, it said. 

"We are pleased with the growth we are continuing to see across Lottery, Digital, and SciPlay while also stabilizing gaming operations driven by the successful launches of several new games. 

The second quarter really highlights the diversity of our business and the many avenues we have to generate revenue across the globe," said Barry Cottle, president, and chief executive officer of Scientific Games. 

"The entire organization is laser-focused on strengthening our core business and capturing market share in emerging digital markets while making our business more efficient. These key focus areas will allow us to deliver the greatest returns for our stakeholders, set ourselves up for profitable growth, and generate significant cash flow to continue on our deleveraging path."

Michael Quartieri, chief financial officer of Scientific Games, added, "This quarter, we paid down another $155 million in debt bringing our year to date total to $300 million, and the SciPlay IPO proceeds will continue to enable us to make substantial payments on our debt as we work toward our deleveraging goal."

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