Global gaming and lottery giant Scientific Games, which operates in a number of product markets including digital, gaming and lottery, has today reported its financial results for the fourth quarter of last year and the entire year.
Last year, the company faced a number of unforeseen challenges, but chief executive officer Barry Cottle has stated that it has successfully navigated through them thanks to the work of the team and diversity of business operations.
The start of this year has been somewhat of a different story as the firm is looking to make gains and wins for its products, game franchises and new genre opportunities.
According to reports, Scientific Games is looking to transform the business and capitalise on the evolving industry as it shows disciplined cost and balance sheet management throughout the fourth quarter and year.
In light of the figures being made public today, the company was able to generate over $150 million of operating cash flow and more than $70 million of free cash flow.
Scientific Games, like many corporations in the gaming industry, faced unprecedented times last year when the global pandemic brought forward a series of measures from authorities and governments to help prevent the spread of the virus. In light of this, gaming operations ground to a halt as venues were shuttered and businesses closed their doors during the series of lock-downs.
However, the gaming giant executed its strategy in light of driving cash flow during the latter part of the year and was able to focus on opportunities and improvements going forward in order to increase cash flow conversion and boosting stakeholder value.
Reportedly, Scientific Games total company revenues benefited from improvements in gaming and its lottery products, SciPlay and digital businesses delivering growth during the fourth quarter.
Over the entire year, the company partially offset 25% of its consolidated revenue with SciPlay, a leading developer and publisher of digital games on mobile and web platforms.
When compared with the fourth quarter in the previous year, before the global pandemic, SciPlay revenue increased some thirty percent, digital revenue increased one percent and gaming revenue increased sequentially.
Barry Cottle, CEO and President of Scientific Games commented:
While 2020 certainly had unforeseen challenges, I couldn’t be more proud of our team for successfully navigating through them. The strong execution coupled with the diversity of our business enabled positive cash flow. As we start off the year, I am truly excited about the team, products, and game franchises that should enable share gains, deal wins, and opportunities to enter new genres. The executive team and our Board are working purposefully to transform our Company, capitalize on the evolving industry trends and deliver outsized returns to our Shareholders.
Michael Eklund, Chief Financial Officer of Scientific Games also commented:
We continued to execute, having driven cash flow improvements in the fourth quarter despite a number of COVID-19 related restrictions to our land-based business. The focus remains on disciplined cost and balance sheet management. I’m confident in the opportunities for operational and business process improvements that will drive increased cash flow conversion and deleveraging, leading to increased stakeholder value.