Cost cutting provides Scientific Games with strong liquidity position

Scientific Games Corporation has announced today that after cutting more than $100 million in quarterly costs, the company is currently in a strong liquidity position. They have drawn $480 million from their Revolving Credit Facilities to have the most flexibility during the COVID-19 crisis. Proceeds from borrowing along with cash the company has on hand will allow the brand to seize opportunities to strengthen their business they the gaming industry starts the recovery process.

Continued Reduced Costs:

According to Scientific, the measures taken via operational and capital cost-saving along with additional measures currently being implemented will help to reduce the Q2 quarterly costs by over $100 million. Hour and pay reductions and furloughs played a role in cost-cutting measures, creating more than $50 million in savings for the second quarter.

Capital expenditures came in $50 million lower than previously planned. For the year, Scientific Games anticipates that their capital expenditures will be from $210-$240 million. This is much lower than the anticipated $300 to $330 million.

According to a recent press release…

CEO Barry Cottle, stated that the company will continue to reduce costs to position themselves as an even stronger competitor as the industry begins to recover. Scientific Games is committed to providing the best in class products and services to customers among many sectors including land-based casinos, the lottery, sports betting and online gaming.

Connecticut Lottery Deal:

The liquidity announcement comes at the same time as Scientific announced they were awarded a new five-year contract with the Connecticut Lottery Corporation. They will be the primary instant games provider for the state, offering additional services like marketing, research and analytics.