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Scientific Games Corp Reports Operating Results (10-Q)

August 09, 2010 | About:
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Scientific Games Corp (SGMS) filed Quarterly Report for the period ended 2010-06-30.

Scientific Games Corp has a market cap of $1.11 billion; its shares were traded at around $11.8003 with a P/E ratio of 39.33 and P/S ratio of 1.2. Scientific Games Corp had an annual average earning growth of 3.2% over the past 10 years.SGMS is in the portfolios of RS Investment Management, Pioneer Investments.
This is the annual revenues and earnings per share of SGMS over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SGMS.


Highlight of Business Operations:

For the quarter ended June 30, 2010, total revenue was $233.0 million compared to $225.0 million for the quarter ended June 30, 2009, an increase of $8.0 million or 4%. Our instant ticket revenue for the quarter ended June 30, 2010 was $118.4 million compared to $112.8 million for the quarter ended June 30, 2009, an increase of $5.6 million, or 5%. Our service revenue for the quarter ended June 30, 2010 was $101.0 million compared to $105.5 million for the quarter ended June 30, 2009, a decrease of $4.4 million, or 4%. Our sales revenue for the quarter ended June 30, 2010 was $13.6 million compared to $6.8 million for the quarter ended June 30, 2009, an increase of $6.8 million, or 100%.

For the quarter ended June 30, 2010, instant ticket revenue was $118.4 million compared to $112.8 million for the quarter ended June 30, 2009, an increase of $5.6 million or 5%. The increase was primarily attributable to new CSP contracts in Arkansas and Puerto Rico ($3.5 million), increased revenue from a contract in the U.K. structured as a percentage of sales contract ($2.0 million), higher volumes of instant tickets to existing customers ($3.1 million) and the impact of foreign exchange rates ($2.6 million). The increase was partially offset by a decline in sales of instant tickets to Italy due in part to the disruption created by the instant ticket tender process ($3.7 million) and the loss of our CSP contracts with Ohio and Arizona ($2.2 million).

Diversified Gaming service revenue for the three months ended June 30, 2010 was $47.5 million compared to $50.5 million for the quarter ended June 30, 2009, a decrease of $3.0 million or 6%. The decrease in service revenue was primarily due to lower wagering, or handle, in our racing and venue management division ($1.7 million) and decreased revenue from Global Draw ($1.0 million). The decrease in revenue from Global Draw primarily relates to lower revenues from our Austrian over the counter product ($1.1 million) and lower revenues from revised contract terms in the U.K. combined with sales tax increases ($2.1 million), partially offset by underlying terminal growth and an increase in gross win per terminal ($1.7 million) and the impact of foreign exchange rates ($0.5 million).

For the six months ended June 30, 2010, total revenue was $449.4 million compared to $455.7 million for the six months ended June 30, 2009, a decrease of $6.3 million or 1%. Our instant ticket revenue for the six months ended June 30, 2010 was $227.5 million compared to $222.9 million for the six months ended June 30, 2009, an increase of $4.6 million, or 2%. Our service revenue for the six months ended June 30, 2010 was $194.7 million compared to $205.7 million for the six months ended June 30, 2009, a decrease of $11.0 million, or 5%. Our sales revenue for the six months ended June 30, 2010 was $27.1 million compared to $27.1 million for the six months ended June 30, 2009.

For the six months ended June 30, 2010, instant ticket revenue for Printed Products was $227.5 million compared to $222.9 million for the six months ended June 30, 2009, an increase of $4.6 million or 2%. The increase was primarily due to increased revenue from new CSP contracts in Arkansas and Puerto Rico ($7.5 million), increased revenue from a contract in the U.K. structured as a percentage of sales contract ($4.1 million) and the impact of foreign exchange rates ($5.2 million). The increase was partially offset by a decline in sales of instant tickets to Italy due in part to the disruption created by the instant ticket tender process ($5.0 million), decreased licensed property revenue ($2.3 million) and the loss of CSP contracts with Ohio and Arizona ($4.4 million).

Diversified Gaming service revenue for the six months ended June 30, 2010 was $93.0 million compared to $98.6 million for the six months ended June 30, 2009, a decrease of $5.6 million or 6%. The decrease in service revenue was primarily due to lower wagering, or handle, in our racing and venue management division ($4.1 million) and decreased revenue from Global Draw ($1.8 million). The decrease in revenue from Global Draw primarily relates to lower revenues from our Austrian over the counter product ($2.9 million) and lower revenues from revised contract terms in the U.K. combined with sales tax increases ($3.8 million), partially offset by underlying terminal growth and an increase in gross win per terminal ($2.7 million) and the impact of foreign exchange rates ($2.5 million).

Read the The complete Report

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