Scientific Games Corporation (SGC) has outlined strong progress for its corporate contingency programme to navigate global COVID-19 headwinds, adding that it expects to secure ‘$100 million in cost savings during Q2 trading’.
This morning, the Nasdaq technology group issued new guidance to investors on its COVID-19 contingency programme triggered on 31 March 2020.
Focusing on reducing workforce costs, SGC has implemented group-wide reductions in executive pay, while further engaging in furlough programmes and minimising staff capacities.
SGC detailed that drastic workforce measures are expected to secure the company $50 million in cost savings during Q2 trading. The company will secure further savings with a Q2 reduction in capital expenditures of $50 million.
Updating its full-year 2020 guidance, SGC predicted that group capital expenditures will be in the range of $210-240 million, compared to previous forecasts of $300-330 million.
SGC reminded investors that the company has secured access to a $480 million revolving credit facility to provide ‘maximum flexibility during difficult times’.
The technology group detailed that the credit funds and its available cash of $200 million will allow the company to recover faster and take advantage of future opportunities.
Scientific Games CEO Barry Cottle said: “We continue to reduce our costs so that we can position our Company to be an even stronger competitor as the industry begins to recover.
“We remain committed to providing our best in class products and services to our customers across lottery, iGaming, sports betting and land-based casinos while innovating for the future. The diversity of our business, serving customers across the industry and around the globe, gives us unique strength in these challenging times.”