It’s been a difficult quarter for many online casinos and developers this year, with regulations changing. However, despite this, Scientific Games (SG) the global gaming giant has managed to hold steady.
Indeed, it has seen its revenue stay at £701 Million ($845m) for the months of April, May, and June. However, the loss for the 3 months has become greater as a result of debt financing costs. Overall, SG has seen growth in fields such as its SciPlay, Lottery and Digital divisions.
But unfortunately, the revenue dropped in gaming as a result of fewer casinos opening and fewer systems launched compared to 2Q18. And so this translate into a 1% fall on the overall Adjusted EBITDA, to £278 Million ($335m).
A Deeper Analysis
When looking more closely at the results, we can see which division underperformed.
Firstly, Gaming revenue saw an overall drop of 9%, down to £354 Million ($427m). This includes a £16,5 Million ($20m) decline in gaming machines sales, which fell to £123 Million ($148m). Similarly, there was also a decline in gaming systems, dropping from £70 Million ($84m) to £55,5 Million ($67m). These drops were generally in the US markets as in international new unit shipments saw an increase of 9.6%.
On the plus side, the lottery revenue increased from 12% to £191 Million ($231m). Also, SciPlay increased by 18% to £98 Million ($118m), with Digital growing 3% to £57 Million ($69m).
Paying its Debts
The second quarter saw Scientific Games paying down another £128 Million ($155m) in debt. And so, this brings the year to date amount of £249 Million ($300m). With the success of the SciPlay division, they can continue to make big payments towards any outstanding debts and continue to work towards their goal. Overall, the results of the second quarter highlight the diverse aspects of the business and the number of ways they can create revenue globally.