The first quarter of 2021 was a successful period for the gaming giant Scientific Games, which saw its revenue go up and losses decrease.
The sales of gaming machines dropped during the first three months of the year, but growth in digital and social segments, and lottery, helped offset that decline.
Promising Numbers
Scientific Games generated $729 million in revenue, representing a rise of 0.6% compared to the same period of 2020. Revenues from services improved by 7.9% to $463 million, while instant products accounted for $162 million of that sum, 20% more than in the corresponding quarter of last year. On the other hand, product revenue dropped by 38.1% to $104 million.
The company’s lottery division led the way with $248 million in revenue, improving its last year’s performance by 17%. The US growth was the major driving factor behind these numbers.
On the other hand, the land-based arm saw a 23.1% decline in revenue, primarily due to a drop in the sales of gaming machines.
CEO Satisfied
The social gaming division also improved its figures, increasing its revenue by 28% to $151 million, mainly thanks to growth in the mobile segment. Online revenue jumped by 11.9% to $86 million, with the rise in gaming offsetting a drop from the sport’s contribution.
Commenting on the quarter results, CEO at Scientific Games, Barry Cottle, said his side was satisfied that all segments had shown solid performance. He pointed out that the new strategy, which focused on research and development and reduced administrative costs, had paid off.
Cottle added he was confident the company’s new roadmap would continue to be successful and help all its divisions deliver strong growth.
Expenses Went Down
He pointed out the recent results showed the full strength of the gaming giant’s content.
And while revenue went up, expenses dropped to $648 million.
However, costs of sales services and instant win products went up to $139 million and $77 million, respectively. Costs of product sales decreased by 45.1% to $50 million.
Administrative and general costs were reduced by 12.1% to $186 million, with research and development costs slightly rising to $52 million. Costs of depreciation, amortization, and impairment dropped to $121 million. Restructuring costs also went down to $21 million.
In the end, the company’s operating profit amounted to $81 million, significantly improving from last year’s $32 million.
Gains from other Scientific Games’ businesses helped offset a massive interest expense of $121 million. All in all, non-operating expenses dropped by 26.9% to $87 million, meaning pre-tax losses of $6 million represented a significant improvement compared to Q1 2020.
CEO Cottle said he was pleased with the progress made over the last quarter and pointed out that positive results were made despite the continued challenges. He also added the executive team and the company’s board would continue to optimize their portfolio and capitalize on growth opportunities.