Zona de Azar USA – Fewer Casino Openings Stifle Scientific’s Second Quarter

USA.- August 5th 2019 www.zonadeazar.com Scientific Games second quarter revenue came in at $845m consistent with growth in lottery, social, and digital offset by a drop in land-based gaming, which was revenue down due to fewer casino openings and systems launches compared to last year, as well as lower replacement sales.

Gaming operations in the US and Canadian revenue were flat sequentially driven by a $0.52 increase in average daily revenues from the prior quarter, while the installed base decreased by 902 units from the removal of older machines and the closure of a racino in the Northeast. Total gaming operations revenues decreased by $2m sequentially as international operations revenue was slightly impacted, as anticipated, by the implementation of the £2 max bet limit in April.

Slot machine sales into the US and Canada decreased due to lower replacement units, while international units increased. The company launched the new Twinstar Wave XL cabinet on a for sale model with six themes and the entire library of content from the Twinstar J43. Gaming systems revenue was down due to fewer Canadian systems launches. Table games continued to grow with revenue up $3m from the prior year to $62m on continued strength in the business.

On the plus side, lottery systems revenue was $24m higher primarily related to equipment sales as part of a recent award of a 10-year sports betting contract in Turkey.Instant products revenue was flat reflecting growth in international business offset by a decline domestically related to the anniversary of the Willy Wonka linked game. Digital casino platform reliably processed over $9bnin total wagers. The company was awarded platform of the year at the EGR 2019 B2B Awards for Open Gaming System (OGS) and Open Platform System (OPS). The company is currently launching mobile sports in Pennsylvania, Indiana, and Iowa with more on the horizon.

“We are pleased with the growth we are continuing to see across Lottery, Digital, and SciPlay while also stabilising 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 $155m in debt bringing our year to date total to $300m, and the SciPlay IPO proceeds will continue to enable us to make substantial payments on our debt as we work toward our deleveraging goal.”

Edited by: @MaiaDigital (Twitter) www.zonadeazar.com