Games segment leads strong recovery for Scientific Games in 3Q21 following sale of lottery and sports betting activities

Global games giant Scientific Games reported a 25% increase in revenue from continuing operations to US $ 539 million in 3Q21, mainly due to the dynamics of the North American market.

According to the company’s September quarterly earnings release, Gaming Ops, Game Sales and Tables all posted strong gains from 3Q20, while Scientific Games’ iGaming business revenue climbed 109% in the United States, bringing the market share to 27%.

Gaming revenue grew 47% year-on-year to $ 339 million and iGaming 3% to $ 53 million, although SciPlay fell 4% to $ 147 million due to a “temporary event. “linked to one of its social casinos. Scientific Games said it expects SciPlay to return to both annual and sequential growth in the fourth quarter.

The company’s third-quarter earnings result did not incorporate contributions from its lottery and sports betting businesses, both of which were recently sold for a combined price of more than $ 7 billion. Including discontinued operations, revenue increased 18% year-over-year to $ 824 million.

Net income for the period was US $ 100 million, reversing a loss of US $ 187 million in 3Q20, while Adjusted EBITDA from continuing operations was US $ 203 million.

“In the past few months alone, we’ve made tremendous progress on our strategic pillars, delivering on our promises and rapidly advancing our vision to be the world’s leading cross-platform games company,” said Barry Cottle, president and Chief Executive Officer of Scientific Games.

“With the sale of our lottery and sports betting business, we are transforming our business, raising US $ 7 billion, which will significantly reduce debt on the balance sheet and allow us to invest for growth. With our streamlined organization, we have all the pieces in place and we are particularly focused on creating fully cross-platform games.

“Operationally, we also made great progress during the quarter, further cementing the turnaround in our Gaming business, strengthening our leadership position in iGaming and making great strides in expanding Casual at SciPlay. I would like to thank all of our teams around the world for their hard work and commitment and for what they have enabled us to accomplish.

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