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Scientific Games Shares Are Trading Lower As Pandemic Hits Q1 Gaming Revenue

05/10/2021 13:11
  • Scientific Games Corp (NASDAQ: SGMSreported first-quarter FY21 revenue growth of 1% year-on-year to $729 million, beating the analyst consensus of $713.24 million.
  • Gaming revenue declined 23% Y/Y to $244 million from the pandemic-induced restrictions for global casinos; Lottery revenue rose 17% Y/Y to $248 million from U.S. instant game sales, large Powerball, Mega Millions jackpots, and strength in Europe. 
  • SciPlay revenue rose 28% Y/Y to $151 million from continued growth in social casino games that outpaced the market and record payer conversion.
  • Digital revenue rose 12% Y/Y to $86 million from iGaming’s record results in the quarter led by original content, successful launch in Michigan, and strength in Europe.
  • The new Gaming strategy and product roadmap continue to have success and Lottery, with strong growth delivery from the SciPlay and Digital businesses in Q1, CEO Barry Cottle said. 
  • Net loss declined 94.2% Y/Y to $9 million, with EPS loss of ($0.16), beating the analyst consensus of ($0.46) loss.
  • AEBITDA rose 35% Y/Y to $270 million.
  • It generated $123 million in operating cash flow and held $1.1 billion in cash and equivalents.
  • Price action: SGMS shares traded lower by 5.39% at $52.99 on the last check Monday.