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Scientific Games Corp Reports Operating Results (10-Q)

August 09, 2010 | About:
10qk

10qk

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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.

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).

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