SGMS - SGMS STOCK NEWS

Scientific Games (NASDAQ: SGMS) is set to unveil its latest innovations at the 2021 Global Gaming Expo (G2E) from Oct. 4-7 in Las Vegas. The company showcases its industry-leading products in gaming, iGaming, and sports, presenting an omni-channel approach to enhance player experiences. Highlighted offerings include a new iGaming studio, top-performing hardware like the Kascada and Mural cabinets, and unique systems features such as the Player Boutique for engaging players. CEO Barry Cottle emphasizes the company's rapid progress in becoming a leading global gaming enterprise.

Scientific Games announced a Consent Solicitation for holders of its various Senior Notes, aiming to amend indentures to allow for a lower cash requirement from asset sales. The proposed change seeks to reduce the cash threshold from 75% to 60% specifically for a potential initial public offering (IPO) of its lottery business, SG Lottery, by June 30, 2022. The company intends to use proceeds from any SG Lottery transaction primarily for debt repayment, with no dividends or repurchases planned. The solicitation expires on September 30, 2021.

Scientific Games Corporation (NASDAQ: SGMS) announced the appointment of Connie James as Executive Vice President, Chief Financial Officer, Treasurer, and Corporate Secretary, effective October 15, 2021. Connie has previously served as CFO of Scientific Games' Gaming business since January 2020. Current CFO Mike Eklund will step down to pursue other opportunities but will remain until October 15, 2021. CEO Barry Cottle expressed confidence in Connie's leadership during the company's strategic transformation and divestitures, while highlighting the performance improvements achieved under Mike's tenure.

Scientific Games Corporation (NASDAQ: SGMS) is exploring strategic alternatives for divesting its lottery business, SG Lottery. This sector has demonstrated resilience, contributing 73% of revenue from North America and 24% from Europe in FY2020. SG Lottery holds a commanding 69% share in global Instant Games. Expected revenue growth for FY2021 is forecasted at 13.6% CAGR through 2022, driven by initiatives like the Scientific Games Enhanced Partnership and market expansions. Significant capital expenditures of $55 million are anticipated for contract renewals, bolstering future growth potential.

Scientific Games Corporation (NASDAQ: SGMS) has secured a 10-year agreement with Azerlotereya to provide retail and digital lottery solutions in Azerbaijan. This partnership extends their collaboration with Demirören, which operates Azerbaijani national lottery services. Under the agreement, Scientific Games will supply its AEGIS® omni-channel bet management system, enhancing lottery operations with retail instant games and sports betting. This move follows the successful launch of a sports betting program in Turkey, which has become the second-largest state-sponsored operation globally.

Scientific Games Corporation (NASDAQ: SGMS) announced its acquisition of Sideplay Entertainment, a key player in the digital 'eInstant' gaming sector, enhancing its iLottery portfolio. This strategic move aims to boost player engagement and market presence in global digital lottery markets, contingent on regulatory approval. Sideplay, known for its innovative game development, significantly contributes to the UK National Lottery and has launched over 270 games since 2003. The acquisition is poised to accelerate Scientific Games' growth in interactive lottery solutions across its extensive customer base.

SciPlay Corporation (NASDAQ: SCPL) formed a special committee of independent directors to review a proposal from Scientific Games (NASDAQ: SGMS) regarding the acquisition of SciPlay's remaining 19% equity interest. The proposal, announced on July 15, 2021, suggests an all-stock transaction where SciPlay shareholders would receive 0.250 shares of Scientific Games for each share they own, reflecting an 11% premium based on stock prices as of July 14, 2021. Lazard and Sullivan & Cromwell LLP have been retained as advisors. The Board and Special Committee have yet to make a decision on the proposal.

Scientific Games Corporation (SGMS) reported a strong second quarter for 2021, with revenues reaching $880 million, a 63% increase year-over-year. The gaming segment achieved over 300% growth, bolstered by a $38 million recovery related to UK VAT overcharges. Net income surged to $113 million from a $198 million loss in 2020, with record contributions from Lottery and Digital operations. The net debt leverage ratio improved to 7.2x, showing a decline of nearly one third since the year's start. The company remains focused on optimizing its portfolio and strategic divestitures to drive shareholder value.

On August 4, 2021, Scientific Games (NASDAQ: SGMS) announced its acquisition of Lightning Box, a Sydney-based slot developer. This strategic move aims to enhance the company's position in the digital gaming market, focusing on sustainable growth through quality content. Lightning Box is known for popular titles like ChickenFox and Astrocat, and its games are already integrated into the OpenGaming™ platform. The acquisition is expected to streamline game development and leverage Scientific Games' extensive resources for better market performance.