scientific games backs tough measures eyeing fast covid 19 comebackby Joker 12.05.2020 0 comments
Scientific Games (SGC) has booked a net loss of $155 million as part of its Q1 2020 trading update, citing that COVID-19 disruptions have impacted all business channels.
Operating in unprecedented times, SGC has witnessed its land-based casino customers temporarily close their venues across all jurisdictions. Meanwhile, further COVID-19 disruptions have impacted the Nasdaq technology group’s commercial pipeline for SGC casino and lottery manufacturing and equipment sales.
The disruptive circumstances have seen SGC record a 13% revenue drop to $725 million (Q12019: $837m), as net cash provided by operating activities dropped to $120 million (Q12019:$167m).
Facing COVID-19 disruptions head-on, SGC secured access to a $480 million revolving credit facility during Q1 trading, expanding the firm’s available cash position to $1 billion.
Accounting for its emergency measures, SGC booked a further $37 million in period costs related to credit receivables and temporary inventory write-downs, undertaken as COVID-19 safeguards.
As previously reported, SGC has implemented a series of group-wide operational and cost-saving measures attached to lower capital expenditures, workforce-related savings and reduced corporate expenses.
Navigating Q2 complexities, SGC explained that these drastic measures will improve the firm’s cash flows by circa $150 million.
Barry Cottle, President and Chief Executive Officer of Scientific Games, said: “We are working around the clock to take care of our employees, customers, shareholders and other key stakeholders in these difficult times while providing uninterrupted products and services to those customers who continue to operate.
“I am confident that the measures we are implementing now will allow us to take advantage of opportunities to strengthen our business and prepare us to come out of the crisis even stronger than before.
“We have a diverse portfolio of assets, products and services, and our previous investments in digital gaming technologies uniquely position us to navigate and ultimately excel, as we emerge from this challenging environment.”