Scientific Games Corporation (SG) experienced a significant decline in revenue in 2020, plummeting nearly 20% to $2.72 billion. This downturn was primarily attributed to the closure of casinos and the subsequent reduction in game sales. However, the company witnessed an increase in revenue from online and social gaming, which provided some mitigation.
The company’s service revenue also decreased, dropping 12.7% to $1.59 billion. Product sales experienced a more substantial decline, falling 44.4% to $553 million. Instant game sales saw a modest decrease of 1.9% to $578 million.
Scientific Games’ expenses decreased slightly, down 5.4% to $2.7 billion, resulting in a modest surplus over revenue.
These expenses included $531 million for service sales, $349 million for product sales, and $280 million for instant games.
The company reduced spending on marketing and administration, down 0.9% to $701 million. Research and development expenses, as well as depreciation and impairment costs, also saw reductions.
However, Scientific Games recorded a $54 million write-off due to a failed investment and incurred significantly higher restructuring and other costs, increasing 139.3% to $67 million.
As a consequence of these factors, the company’s profit dwindled to a mere $22 million, representing a substantial 96% decrease.
