Scientific Games reported a widened net loss of $155 million in the first quarter of 2020, due to lower revenue and the effects of COVID-19 on the business.
First-quarter revenue fell 13 percent to $725 million, down from $837 million in the prior-year period. Scientific Games said its gaming revenue was impacted by the COVID-19 disruptions which caused a temporary closure of casino operations across the world.
Lottery revenue was also lower compared to the prior year, with the previous year including significant equipment sales.
The company reported a consolidated adjusted EBITDA of $200 million, a decline of 39 percent from the first quarter of 2019.
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.”
Michael Quartieri, Chief Financial Officer of Scientific Games, added, “We have made swift and meaningful reductions to our cost structure in response to the current environment. We believe these changes in conjunction with our available liquidity provide us the tools to withstand the impact from COVID-19. I’m confident that our streamlined cost structure will allow for accelerated cash flow generation and deleveraging in the future.”