Scientific Games Post Q2 2019 Results, Reveal an Increase in Revenue
According to the recently-posted report, Scientific Games generated $1.68 billion in revenue during the six months ending on June 30, which represents a rise of 1.2% when compared to the corresponding period of the last year.
At the same time, the Las Vegas-headquartered gaming giant managed to cut its net loss by almost 50%!
Numbers Going Up
Scientific Games also reported a rise in service revenue, which improved by 4.5% from H1 2018 to $916 million. However, both product sales and instant products recorded a decline, dropping by 1% and 3.3% to $476 million and $290 million respectively.
The rise in revenue was complemented by lower operating costs, which went down from $1.51 billion to $1.43 billion, while the cost of services went down by 8.2% to $246 million. The figures also revealed that depreciation, amortization and impairments during this period decreased from $361 million to $335 million.
It should be pointed out that Scientific Games spent more money in other areas of its business. The cost of products sales increased by 3.6% to $226 million, while general and administrative expenses jumped by 4% to $360 million.
The good news for the company is that overall spending was down in the first half of this year. Combined with the improvements made in revenue, Scientific Games significantly cut its net losses by 52% to 99 million. Net loss before tax also decreased – dropping from $202 million in the first six months of 2018 to $88 million.
Cutting Its Losses
On the other hand, the company failed to record positive figures for the second quarter of the year, generating $845 million in revenue during the three-month period ending on June 30.
Game revenue recorded went down by 9% to $427 million, while the cut in the maximum stake on fixed-odds betting terminals (FOBTs) in the U.K. was cited as the main factor behind this drop. Lotteries generated 12% more revenue, ending the period with $231 million, while digital revenue also improved, recording $69 million in revenue, 3% more than in the same period of 2018. Scientific Games’ SciPlay social gaming arm saw its revenue improve by 18% to $118 million.
Despite cutting its total operating expenses by nearly 4% to $717 million, while net loss increased from $6 million to $75 million, but mainly due to a $75 million payment, the company made for the extension of its concession in Italy.
Commenting on the recent results, Barry Cottle, President and Chief Executive Officer at Scientific Games said the second quarter really highlighted the second quarter really highlights the diversity of their business and the many avenues they had to generate revenue across the globe. He pointed out the entire organization was laser-focused on strengthening the core business and capturing market share in emerging digital markets while making their business more efficient.