Coronavirus: Scientific Games estimates $100m cut in quarterly costs
Scientific Games expects to cut more than $100m in quarterly costs as part of its cost-saving measures amid the coronavirus pandemic.
In a trading update, the supplier ensured it had “a strong liquidity position,” having drawn approximately $480m under its Revolving Credit Facilities (RCF) to strengthen the business.
Scientific Games will combine the borrowings with approximately $200m of its cash on hand to assist the business.
The supplier also has an 82% interest in SciPlay, which has approximately $130m of cash on hand, no outstanding debt and $150m available under its RCF.
In additional cost-saving measures, the company has implemented hour and pay reductions, furloughs and reductions in staff force.
Scientific Games predicts as a result of its cost-saving measures its Q2 costs will be reduced by over $100m.
The company predicts capital expenditure for the full-year 2020 to be in the range of $210m-240m, in comparison with the $300m-330m estimated previously.
Barry Cottle, Scientific Games CEO, said: “We continue to reduce our costs so we can position our company to be an even stronger competitor as the industry begins to recover.
“The diversity of our business, serving customers across the industry and around the globe, gives us unique strength in these challenging times.”
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