With a view to securing ‘$100m in cost savings during Q2 trading,’ Scientific Games Corporation (SGC) has outlined strong progress for its corporate contingency program to navigate the ongoing global COVID-19 crisis.
Following the triggering of its COVID-19 contingency program on March 31, the firm has issued new guidance to investors in which it revealed it is focusing on reducing workforce costs.
This will be achieved by implementing group-wide reductions in executive pay, while further engaging in furlough measures and minimizing staff capacities it said.
In addition to this Scientific Games has detailed that drastic workforce measures are expected to secure $50m in cost savings during Q2 trading, with the company also set to economize further still with a Q2 reduction in capital expenditures of $50m.
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.”
Updating its full-year 2020 guidance, the firm predicted that group capital expenditures will be in the range of $210-240m, compared to previous forecasts of $300-330m. It also reminded investors that the company has secured access to a $480m revolving credit facility to provide ‘maximum flexibility during difficult times’.
The technology group detailed that the credit funds and its available cash of $200m will allow the company to recover faster and take advantage of future opportunities.