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Sep 30, 2021
Light & Wonder Q3 2021 Earnings Report
Scientific Games' Q3 2021 results were reported, demonstrating revenue growth and strategic progress.
Key Takeaways
Scientific Games reported a strong third quarter with consolidated revenue from continuing operations up 25% year-over-year to $539 million. The company is focusing on de-leveraging and investing in growth following the sale of its Lottery and Sports Betting businesses for $7 billion.
Consolidated revenue from continuing operations increased by 25% year-over-year.
Net income from continuing operations was $100 million, a significant improvement from the prior year's net loss of $187 million.
The company made progress on strategic pillars, including optimizing the portfolio and investing in growth opportunities.
Debt was reduced by $635 million since October 2020, with a net debt leverage ratio decline of 4 turns to 6.6x.
Revenue by Segment
Forward Guidance
Scientific Games is focusing on becoming the leading cross-platform global game company by optimizing its portfolio, investing in content and digital markets, and de-levering the balance sheet.
Positive Outlook
- Sale of Lottery and Sports Betting businesses for $7 billion to de-lever the balance sheet.
- Streamlined organization focused on cross-platform game development.
- Acquisition of Authentic Gaming to enter the Live Casino market.
- Strong growth in Gaming operations and iGaming businesses.
- Expected return to growth for SciPlay in the fourth quarter.
Challenges Ahead
- Impact of COVID-19 pandemic on casino and lottery operations.
- Risks related to the pending divestitures and acquisition.
- Potential unfavorable social, political, economic, and financial conditions.
- Dependence on key providers and suppliers.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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