Lottery, betting and gaming technology outfit Scientific Games Corp (SGC) lost $111m in the third quarter of 2020 but the situation would have been much worse without the company’s burgeoning digital operations.
On Wednesday, SGC announced that its revenue in the three months ending September 30 totaled $698m, down from $855m in the same period last year but up from $539m in Q2 2020. Adjusted earnings fell 31.6% to $235m and the company booked a net loss of $111m versus an $18m profit in Q3 2019.
SGC’s mainstay gaming division was the dead weight on the Q3 report, with revenue falling by nearly half to $231m and earnings down two-thirds to $77m as land-based casinos remained under pandemic restrictions. The result was a major decline in active gaming machine revenue, lower shipments of new and replacement machines and less need for gaming services.
The lottery division fared far better, with revenue and earnings each up 10% to $241m and $109m, respectively. The gains came via a 20% rise in domestic instant win ticket sales and a nearly 50% rise in international product sales.