Scientific Games has published its financial results for Q3 of FY2021, revealing its strong business performance following the sale of its lottery business and growth of its gaming operations.
For the period ending September 30, SG posted total revenues of $824m from continuing revenues of $539m, up 25% year-on-year.
The firm’s gaming operations headlined the revenue figures, increasing by 47% year-on-year up to $339m. Furthermore, gaming AEBITDA increased by 123% up to $172m for Q3, with the company’s total AEBITDA climbing 74% up to $203m.
Igaming revenues grew by 6% and AEBITDA by 13%, driven by the strong performance of SG’s original content and GGR.
Compared to a $187m loss in Q3 of FY2021, SG posted a total net income from continuing operations of $100m, aided by the strong gaming revenues and a favoured tax benefit.
Additionally, SG acknowledged it was on ‘an exciting path’ to achieving its strategic aims following the sale of its lottery and sports betting businesses for $7bn recently, helping to ‘streamline’ operations.
Barry Cottle, President and CEO, commented: “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 $7bn which will significantly de-lever the balance sheet and enable us to invest for growth. With our streamlined organisation, we have all of the pieces in place, and are singularly focused on building games fully cross-platform.”
From a holistic perspective, the company posted net debt of $8.13bn decreased by $259m compared to the prior-year period.
Driven by a significant increase in earnings, primarily from gaming operations, SG’s combined free cash flow was $130m, which includes both continuing and discontinued operations.
Connie James, EVP and CFO, added, “We have an exciting path ahead of us as we move rapidly to unlock significant value. 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.”