Gaming equipment manufacturer Scientific Games reports Q2 loss
Las Vegas-based gaming equipment manufacturer Scientific Games Corp. reported a 36.2 percent decrease in revenue en route to a $198 million loss in the second quarter, the company reported Thursday.
The company has taken steps to improve its liquidity as it gears to operate during a period affected by the coronavirus pandemic.
“I am very proud of how we are navigating the current environment, as evidenced by our strong cost containment and cash management, which allowed us to deliver better-than-expected cash flow for the quarter,” Scientific President and CEO Barry Cottle said in a release announcing results.
The company outperformed analysts’ expectations.
The company reported a net loss of $198 million, $2.15 a share, on revenue of $539 million for the quarter that ended June 30.
The company reported a net loss of $75 million, 83 cents a share, on revenue of $845 million in the same quarter a year ago.
In a conference call with investors, Cottle and new Chief Financial Officer Mike Eklund, who joined the company June 1, said they have streamlined cost structures and operating efficiencies to drive free cash flow generation.
Scientific Games has struggled because most of its customers — casino companies worldwide — have been closed or severely restricted in operations because of the pandemic, particularly during the second quarter. But executives also said they have an advantage in that 95 percent of its customers are tribal or regional operations that are expected to recover faster than big resorts in fly-in markets like Las Vegas.
Cottle said the company hopes to capitalize on cashless gaming products and in iGaming and sports through its partnership with Landry’s Inc.’s Golden Nugget casino properties nationwide.