Las Vegas-based mobile- and web-platform game maker SciPlay Corp. posted a record payer conversion rate and higher average revenue per daily active user in its second quarter. Net income, weighed down by higher user acquisition spending, fell, but topped Wall Street forecasts. Revenue rose, but missed.
In an 8-K statement filed with the Securities and Exchange Commission, SciPlay, spun off from Light & Wonder in 2019, had net income of $32.3 million, or 23 cents per diluted share, for the three months ended June 30, down from net income of $37.9 million, or 24 cents per diluted share, a year earlier.
The latest results topped the 22-cents-per-share consensus estimate of analysts polled by Seeking Alpha. SciPlay said an $11.8 million increase in user-acquisition spending, a $2.3 million increase in personnel costs, and a $2 million increase in depreciation and amortization expenses affected the results.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure excluding one-time costs, fell 14.2% to $41.1 million from $47.9 million.
Revenue rose 4% to $160.1 million from $154 million, but missed the $162.9 million forecast of Seeking Alpha-polled analysts.
SciPlay said the payer conversion rate in the quarter was a record 9.4% and average revenue per daily active user rose 2.8% to 74 cents from 72 cents
In the statement, SciPlay Chief Executive Officer Josh Wilson said his company widened its market share in the quarter and outperformed the social-game casino market.
“Our core business remains healthy, even in a seasonally soft quarter,” he said, “and we continue to progress on the integration of Alictus, with the studio launching a number of new games in the quarter.”
SciPlay in March said it will acquire 80% of Alictus, an Ankara, Turkey-based casual mobile game developer and publisher, for $100 million in cash. Over the next five years, SciPlay will acquire the rest of Alictus for equal installments of up to $200 million.
In the analysts-and-journalists conference call, Wilson said his company has been investing in its direct-to-consumer platform for several months and expects to launch it in the fourth quarter, then scale it up in 2023.
Interim Chief Financial Officer Daniel O’Quinn said SciPlay bought back 1.1 million shares, a quarter of its two-year authorization.
SciPlay shares rose 2 cents, or 0.16%, to close at $12.45 on the Nasdaq Stock Market. The shares fell 8 cents, or 0.64 cents, after hours to settle at $12.37.
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