Scientific Games Stock Jumped 9% On Clocking 63% Revenue Growth, Margin Expansion

Scientific Games Corp SGMS reported second-quarter FY21 revenue growth of 63% year-on-year to $880 million, beating the analyst consensus of $765.2 million.
Segments: Gaming revenue grew 303% Y/Y to $367 million driven by Gaming operations and Gaming machine sales from the strength of the new product roadmap, record gross gaming revenue (GGR) in the U.S., rebound in the U.K. and Europe, and FOBT recovery.
Lottery revenue increased 27% Y/Y to $266 million, driven by instant retail game sales.
Digital revenue rose 27% Y/Y to $93 million driven by original iGaming content, record iGaming GGR, and new U.S. sportsbooks. SciPlay revenue declined 7% Y/Y to $154 million.
Services revenue increased 71.1% Y/Y to $551 million, Product sales revenue grew 84.5% Y/Y to $155 million, and Instant products revenue rose 30.8% Y/Y to $174 million.
EPS of $1.10 beat the analyst consensus loss of $(0.09).
Consolidated AEBITDA expanded 217% Y/Y to $383 million, driven by double-digit AEBITDA growth in Gaming, Lottery, and Digital. The margin expanded by 2,107 bps to 43.5%.
Scientific Games generated $149 million in operating cash flow and held $983 million in cash and equivalents.
Gaming delivered its highest revenue quarter since Q4 of 2019, Lottery and Digital achieved record results, and SciPlay had its second-highest revenue quarter in its history.
Price action: SGMS shares gained 9.26% at $69.97 on Monday.