Scientific Games Corp (SGMS) Q4 2020 Earnings Call Transcript

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NASDAQ: LNW

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Market capitalization Change of today Arrow Shin Down (0. 90%) $ 0. 99 Current price $ 111. 47 2024 4:00 pm on September 13, 2024 (Eastern Time in the United States) Current price

SGMS's financial results briefing session for the January 2021, 2021.

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Scientific Games Corp (LNW 0. 90%) Q4 2020 Earnings Call March 1, 2021, 4:15 Afternoon et

Contents:

• comment
• Question and answer session
• Caller

Prepared Remarks:

Operator

Hello. Welcome to the Scientific Games 2020 Fourth Financial Telegral Council. [Operator instructions] Then, I would like to take over the meeting to Jim Bombsey, Vice President of Investor Lilations. please.

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Jim Bombas e-Senior Vice President in charge of investor

Hello the operator. At today's telephone conference, we will talk about the fourth quarter of 2020 and the year's business performance and business results, and will provide doubtful time and answer. In the afternoon, Barry Cottor and Mike Ekland will be in charge.

Today's call includes a description of the future outlook based on the 1995 Private Securities Litigation Reform (Private Security Reform Act of 1995). These descriptions include risks and uncertainty, and the actual performance may be very different from the content described in this story. For these risks and uncertainties, please refer to the financial results announced today, the materials related to this website, and the documents submitted to the SEC. It also describes specific no n-GAAP financial indicators. The explanation of each no n-GAAP indicator and the adjustment table with the GAAP indicators, which are most directly comparable to each no n-GAAP indicator, are published in the settlement press release and our website investors.

This call will be recorded. A replay of this webcast and accompanying materials will be archived in the Investor section of our website, scientificgames. com. Supplemental supporting slides will also be available on our Investor Relations website. These slides are intended to facilitate discussion of our performance and provide you with post-call reference material.

And now, Barry Cottle.

Barry Cottle -- President and Chief Executive Officer

Thank you, Jim. Good afternoon, everyone. We are very pleased with our strong fourth quarter results and the strategic and operational progress we made in our key business areas. We are also very proud of what we accomplished as a team, especially given the impact of the pandemic. Looking ahead, we continue to build on the strong foundation we built in 2020. We are investing for growth while being disciplined in managing our balance sheet and realigning our cost base. Given the resumption of gaming, gaming is well positioned to bounce back and we are seeing real momentum in our markets and across our industry. We believe content and solutions will be key to our continued success. To that end, we are building a high-performing culture that attracts and inspires the best talent in the world. At the same time, we are conducting a strategic review with our board of directors to determine how to optimize our portfolio, deleverage our business, and capitalize on key growth areas. Our goal is simple and powerful: to deliver compelling returns to our shareholders by capitalizing on evolving industry and macroeconomic trends. We are moving at a rapid pace. We're not ready to say too much yet, but we are very encouraged by the progress we're making.

Looking at the achievements in the quarter, we were able to continue to achieve good achievements throughout our various Portforio, despite the headwind of the revival of COVID after the consecutive holidays. In particular, the financial performance of the entire company has been improved, especially in sales and AEBITDA, and has achieved recorded records in lottery, sesay, and digital during the full year. With a disciplined approach to cost and driving capital management, free cache flow in the current fiscal year increased compared to the same period of the previous year. The conversion rate to free cash flow was 23%. This is an increase of about 600 bp compared to the same period of the previous year. In addition, he repaid $ 100 million debts during the quarter and repaid $ 100 million in February.

Next, I will briefly explain the business. In the gaming business, global R & D and new strategies for product roadmaps were successful early, and improvements were sequentially improved in all business fields. As you remember, we first started by welcoming excellent human resources to the organization, reviewing the priority of the product roadmap, focusing on the largest profit pool. We rationalized the product organization and introduced one intensive platform. This includes the unification of the R & D system, the rebuilding of the game design studio model, the global hardware and supply chain strategy. We prioritize roadmaps for major segments in the market. Our excellent game designers are developing content targeting major revenue pools using data and analytics to provide information to market segmentation and game design. Under this new strategy, the first cabinet released is "Kascada", and the first game is "Coin Combo". It has just begun, but Kascada has performed an incredible performance of 2. 5 times the average zone average. We are encouraged by this early success. < SPAN> Focusing on achievements in the current quarter, we were able to continue performing well in our various Portforio, despite the headwind of the revival of COVID after the holidays. In particular, the financial performance of the entire company has been improved, especially in sales and AEBITDA, and has achieved recorded records in lottery, sesay, and digital during the full year. With a disciplined approach to cost and driving capital management, free cache flow in the current fiscal year increased compared to the same period of the previous year. The conversion rate to free cash flow was 23%. This is an increase of about 600 bp compared to the same period of the previous year. In addition, he repaid $ 100 million debts during the quarter and repaid $ 100 million in February.

Next, I will briefly explain the business. In the gaming business, global R & D and new strategies for product roadmaps were successful early, and improvements were sequentially improved in all business fields. As you remember, we first started by welcoming excellent human resources to the organization, reviewing the priority of the product roadmap, focusing on the largest profit pool. We rationalized the product organization and introduced one intensive platform. This includes the unification of the R & D system, the rebuilding of the game design studio model, the global hardware and supply chain strategy. We prioritize roadmaps for major segments in the market. Our excellent game designers are developing content targeting major revenue pools using data and analytics to provide information to market segmentation and game design. Under this new strategy, the first cabinet released is "Kascada", and the first game is "Coin Combo". It has just begun, but Kascada has performed an incredible performance of 2. 5 times the average zone average. We are encouraged by this early success. Looking at the achievements in the quarter, we were able to continue to achieve good achievements throughout our various Portforio, despite the headwind of the revival of COVID after the consecutive holidays. In particular, the financial performance of the entire company has been improved, especially in sales and AEBITDA, and has achieved recorded records in lottery, sesay, and digital during the full year. With a disciplined approach to cost and driving capital management, free cache flow in the current fiscal year increased compared to the same period of the previous year. The conversion rate to free cash flow was 23%. This is an increase of about 600 bp compared to the same period of the previous year. In addition, he repaid $ 100 million debts during the quarter and repaid $ 100 million in February.

Next, I will briefly explain the business. In the gaming business, global R & D and new strategies for product roadmaps were successful early, and improvements were sequentially improved in all business fields. As you remember, we first started by welcoming excellent human resources to the organization, reviewing the priority of the product roadmap, focusing on the largest profit pool. We rationalized the product organization and introduced one intensive platform. This includes the unification of the R & D system, the rebuilding of the game design studio model, the global hardware and supply chain strategy. We prioritize roadmaps for major segments in the market. Our excellent game designers are developing content targeting major revenue pools using data and analytics to provide information to market segmentation and game design. Under this new strategy, the first cabinet released is "Kascada", and the first game is "Coin Combo". It has just begun, but Kascada has performed an incredible performance of 2. 5 times the average zone average. We are encouraged by this early success.

Another major sign is to improve our competitiveness in the Top 25 Game List of Irers. In the latest rankings, both premium and sales departments won the top share of new games. With the release of KASCADA installation base, the release of the MURAL cabinet, the release of wonderful games such as "88 Fortunes Emperor's Coins" and "Wily Wonka-Dreamers of Dreams" Momentum I am convinced that it will continue. Regarding cashless, I am very happy to announce a revolutionary cros s-license agreement with IGT for cashless gaming IPs today. Scientific Games and IGTs are leading this field with our patents and technology, and the operator is combined with the footprint of our last mile system with more than 500, 000 interconnected slots. You can get efficient ways to access the most attractive cashless technology portfolio provided to customers. Such early success and momentum include a wide range of strategies and management systems introduced by our new gaming team, that is, a single platform, deploying cabinets all over the world, using the best game and designers. We believe that it shows a intensive approach to aiming for the biggest profit pool. This allows Scientific Games to set up more wonderful games in our cabinet and increase their lifetime value for our customers and players. In other words, we are encouraged by this early momentum and are looking forward to the continuous development of gaming products. < SPAN> Another major sign is to improve our competitiveness in the Top 25 Game List of Irers. In the latest rankings, both premium and sales departments won the top share of new games. With the release of KASCADA installation base, the release of the MURAL cabinet, the release of wonderful games such as "88 Fortunes Emperor's Coins" and "Wily Wonka-Dreamers of Dreams" Momentum I am convinced that it will continue. Regarding cashless, I am very happy to announce a revolutionary cros s-license agreement with IGT for cashless gaming IPs today. Scientific Games and IGTs are leading this field with our patents and technology, and the operator is combined with the footprint of our last mile system with more than 500, 000 interconnected slots. You can get efficient ways to access the most attractive cashless technology portfolio provided to customers. Such early success and momentum include a wide range of strategies and management systems introduced by our new gaming team, that is, a single platform, deploying cabinets all over the world, using the best game and designers. We believe that it shows a intensive approach to aiming for the biggest profit pool. This allows Scientific Games to set up more wonderful games in our cabinet and increase their lifetime value for our customers and players. In other words, we are encouraged by this early momentum and are looking forward to the continuous development of gaming products. Another major sign is to improve our competitiveness in the Top 25 Game List of Irers. In the latest rankings, both premium and sales departments won the top share of new games. With the release of KASCADA installation base, the release of the MURAL cabinet, the release of wonderful games such as "88 Fortunes Emperor's Coins" and "Wily Wonka-Dreamers of Dreams" Momentum I am convinced that it will continue. Regarding cashless, I am very happy to announce a revolutionary cros s-license agreement with IGT for cashless gaming IPs today. Scientific Games and IGTs are leading this field with our patents and technology, and the operator is combined with the footprint of our last mile system with more than 500, 000 interconnected slots. You can get efficient ways to access the most attractive cashless technology portfolio provided to customers. Such early success and momentum include a wide range of strategies and management systems introduced by our new gaming team, that is, a single platform, deploying cabinets all over the world, using the best game and designers. We believe that it shows a intensive approach to aiming for the biggest profit pool. This allows Scientific Games to set up more wonderful games in our cabinet and increase their lifetime value for our customers and players. In other words, we are encouraged by this early momentum and are looking forward to the continuous development of gaming products.

In the lottery business, it was led by the sales of instant games, the best technology products ever, and the highest lottery sales ever, and despite the COVID, they achieved the highest achievements in the full year. Domestic instant games and sales are continuing to be strong and we are leading the market. Scientific Games Enhanced Partnership Instant Game Service (SGEP), global growth of innovative retail and digital products, the world's modernization and lottery profits can be proposed to our customers in the expansion of the profitable profits of lottery. I feel encouraging. This business is a resilient business that has grown for 19 years out of the past 20 years, including two financial crisis and COVID. In the fourth quarter, the pattern applies, sales increased by 10%and AEBITDA increased by 7%. The growth of instant games in the fourth quarter has benefited from the increase in contracts and SGEP mixes and retail solutions from Ilottery. In 2020, the US lottery using SGEP increased by an instant game's retail sales by 10%in the industry. All 13 SGEP lottery customers have recorded a record high in 2020 instant game sales. In 2020, the retail solution POS product was delivered a lot in the past, achieving the highest record in history.

Regarding ILottery, COVID has accelerated the interests of each state, and given the success in Pennsylvania, the system is in place for expansion in the United States. In our flagship Pennsylvania program, the fourth quarter betting increased by 39 % yea r-o n-year, and the growth rate over the year was 67 %. In 2020, the Pennsylvania was the earliest $ 1 billion sales in North America, despite the most competitive casino I game market in the United States. And in the next few years, we expect at least 10 states in the United States to approve ILottery. In the < SPAN> lottery business, it was led by instant games, the highest eve r-paying technology products, and the highest lottery sales ever, and despite the COVID, it achieved the highest achievements in the full year. Domestic instant games and sales are continuing to be strong and we are leading the market. Scientific Games Enhanced Partnership Instant Game Service (SGEP), global growth of innovative retail and digital products, the world's modernization and lottery profits can be proposed to our customers in the expansion of the profitable profits of lottery. I feel encouraging. This business is a resilient business that has grown for 19 years out of the past 20 years, including two financial crisis and COVID. In the fourth quarter, the pattern applies, sales increased by 10%and AEBITDA increased by 7%. The growth of instant games in the fourth quarter has benefited from the increase in contracts and SGEP mixes and retail solutions from Ilottery. In 2020, the US lottery using SGEP increased by an instant game's retail sales by 10%in the industry. All 13 SGEP lottery customers have recorded a record high in 2020 instant game sales. In 2020, the retail solution POS product was delivered a lot in the past, achieving the highest record in history.

Regarding ILottery, COVID has accelerated the interests of each state, and given the success in Pennsylvania, the system is in place for expansion in the United States. In our flagship Pennsylvania program, the fourth quarter betting increased by 39 % yea r-o n-year, and the growth rate over the year was 67 %. In 2020, the Pennsylvania was the earliest $ 1 billion sales in North America, despite the most competitive casino I game market in the United States. And in the next few years, we expect at least 10 states in the United States to approve ILottery. In the lottery business, it was led by the sales of instant games, the best technology products ever, and the highest lottery sales ever, and despite the COVID, they achieved the highest achievements in the full year. Domestic instant games and sales are continuing to be strong and we are leading the market. Scientific Games Enhanced Partnership Instant Game Service (SGEP), global growth of innovative retail and digital products, the world's modernization and lottery profits can be proposed to our customers in the expansion of the profitable profits of lottery. I feel encouraging. This business is a resilient business that has grown for 19 years out of the past 20 years, including two financial crisis and COVID. The pattern applies to the fourth quarter, sales increased by 10%and AEBITDA increased by 7%. The growth of instant games in the fourth quarter has benefited from the increase in contracts and SGEP mixes and retail solutions from Ilottery. In 2020, the US lottery using SGEP increased by an instant game's retail sales by 10%in the industry. All 13 SGEP lottery customers have recorded a record high in 2020 instant game sales. In 2020, the retail solution POS product was delivered a lot in the past, achieving the highest record in history.

Regarding ILottery, COVID has accelerated the interests of each state, and given the success in Pennsylvania, the system is in place for expansion in the United States. In our flagship Pennsylvania program, the fourth quarter betting increased by 39 % yea r-o n-year, and the growth rate over the year was 67 %. In 2020, the Pennsylvania was the earliest $ 1 billion sales in North America, despite the most competitive casino I game market in the United States. And in the next few years, we expect at least 10 states in the United States to approve ILottery.

Looking at SCIPLAY, he achieved a record achievement in 2020 and entered the $ 20 billion casual game market this year, and has been excited about his achievements and future paths. In the full year, sales increased by 25%and AEBITDA increased by 55%. In the fourth quarter, the top line increased by 30 % and the bottom line increased by 41 %. In the fourth quarter, in the fourth quarter, both the market grew, and achieved their goals. The basis of this growth was the focus on the Peyer and the live operation strategy, and we have achieved records in all major indicators. The Company has continued to innovate and promote engagement throughout the social casino portfolio, and the Paper Conversion has achieved 7. 8%of the highest ever.

This year, I am so excited that SCIPLAY's chance to enter the casual game market in Solitia Pets Adventure. The market size of casual games has exceeded $ 20 billion, and we believe that there is a great chance to promote lon g-term growth. The acquisition of Come2Play and the Solitaire Pets Adventure not only purchased a simple monetary game based on the world's most popular card games, but also won a wonderful team based in Tel Aviv and Kiev. I was able to do it. I feel the great potential to promote monetary and engagement by connecting the Solitia Pets Adventure to SCIPLAY machines, data analysis, live operations, and marketing expertise. We succeeded in this strategy in Bingo Showdown, and in the first year we were able to triple the ru n-in revenue. Looking at < Span> SciPlay, he achieved a record achievement in 2020 and entered the $ 20 billion casual game market this year, and has been excited about his achievements and future paths. In the full year, sales increased by 25%and AEBITDA increased by 55%. In the fourth quarter, the top line increased by 30 % and the bottom line increased by 41 %. In the fourth quarter, in the fourth quarter, both the market grew, and achieved their goals. The basis of this growth was the focus on the Peyer and the live operation strategy, and we have achieved records in all major indicators. The Company has continued to innovate and promote engagement throughout the social casino portfolio, and the Paper Conversion has achieved 7. 8%of the highest ever.

This year, I am so excited that SCIPLAY's chance to enter the casual game market in Solitia Pets Adventure. The market size of casual games has exceeded $ 20 billion, and we believe that there is a great chance to promote lon g-term growth. The acquisition of Come2Play and the Solitaire Pets Adventure not only purchased a simple monetary game based on the world's most popular card games, but also won a wonderful team based in Tel Aviv and Kiev. I was able to do it. I feel the great potential to promote monetary and engagement by connecting the Solitia Pets Adventure to SCIPLAY machines, data analysis, live operations, and marketing expertise. We succeeded in this strategy in Bingo Showdown, and in the first year we were able to triple the ru n-in revenue. Looking at SCIPLAY, he achieved a record achievement in 2020 and entered the $ 20 billion casual game market this year, and has been excited about his achievements and future paths. In the full year, sales increased by 25%and AEBITDA increased by 55%. In the fourth quarter, the top line increased by 30 % and the bottom line increased by 41 %. In the fourth quarter, in the fourth quarter, both the market grew, and achieved their goals. The basis of this growth was the focus on the Peyer and the live operation strategy, and we have achieved records in all major indicators. The Company has continued to innovate and promote engagement throughout the social casino portfolio, and the Paper Conversion has achieved 7. 8%of the highest ever.

This year, I am so excited that SCIPLAY's chance to enter the casual game market in Solitia Pets Adventure. The market size of casual games has exceeded $ 20 billion, and we believe that there is a great chance to promote lon g-term growth. The acquisition of Come2Play and the Solitaire Pets Adventure not only purchased a simple monetary game based on the world's most popular card games, but also won a wonderful team based in Tel Aviv and Kiev. I was able to do it. I feel the great potential to promote monetary and engagement by connecting the Solitia Pets Adventure to SCIPLAY machines, data analysis, live operations, and marketing expertise. We succeeded in this strategy in Bingo Showdown, and in the first year we were able to triple the ru n-in revenue.

Looking at our Igaming and sports businesses, it has recently begun in Michigan and Virginia, and the momentum continues to increase as many US States have been legalized. From an international perspective, our platforms continue to have the number one major operator in the UK and Europe in both I-Gaming and Sports Betting. The success was achieved because the hig h-quality essential content provided by our studio and third party studio was summarized in the state. Currently, our platforms have more than 2, 800 games, which have increased by 30 % since 2019, and our games are one of the top classes in the world. The number of game rounds played through our OGS platform exceeded 38 % to 38 % in 2020. We are also enhancing this provision by signing a contract with 45 studios for thir d-party content. This is one of the largest services in the industry, which provides both original content and thir d-party content.

New Jersey has gained more than 30 % share in competitive markets, continuing to be leaders of I games, and has produced very promising initial results in Michigan. One of our largest assets and one of the key to the success of digital games is to use the abundant IP library obtained from the lan d-based game business. This includes titles such as "88 Fortunes", "Rainbow Riches", "JIN JI BAO XI", and "Monopoly", and has added its own digital innovation to these iconic franchises. Our scientific games IP has achieved excellent achievements in fascinating players and pushing up GGRs. In fact, Rush Street Interactive states that the 88 Fortunes is the most popular slot game on the first weekend of the online game in Michigan and earned 10 % of the total handle.

We believe that the Igaming Business has a great business opportunity as the number of states in the United States legalization of Igaming will increase and international business expansion is increasing. In the sports betting business, we are one of the world's leading providers that provide B2B services, and we are in a position to enjoy profits from wider market trends. It has grown through new states and regions, concluding new contracts, building pipeline, and expanding services under the "GET-and-GROW" strategy, and has benefited from these four. The United States has a growing momentum of legalization of sports betting, and it is estimated that in addition to 25 states that have already been legalized, up to 12 states may legalize online sports betting this year.

In 2020, many contracts have been updated or concluded, including hard rock, wi n-resorts, golden nuggets, and flutter brands, including Funduel, Skybet, Paddy Power, and Bet Fair. The US sportsbook, which had three companies in 2018, increased to 17 companies at the end of 2020, and in 2021, there was a powerful pipeline that developed more sportsbooks in the United States. This includes a partner with Fanduel in West Virginia in December, and last week, a partner with our open betting engine in Coloradado. In 2021, we plan to develop our betting engine in the remaining US states operated by Fanduel. The driving force for this success was to provide customers with the most wide and most flexible technical solutions in the industry. Our technical stack has demonstrated its reliability in this year's NFL championship game, demonstrated perfect performance, and provided more markets than any other competitors and i n-house platforms.

Let's talk about the financial results on behalf of the microphone.

Michael C. Eclan d-Executive Vice President, Supreme Finance Officer, Finance and Corporate Service

Hello everyone. I'm glad to be with you again at the end of the day. How are you all doing well? Before you start talking about today's financial, let me tell you that it is more agile to Barry's comments. Barry and I are talking a lot about business, but in front of Scientific Games, we will provide customers, value to players, value to global team members, and value to shareholders. We sincerely agree that we have a true opportunity. We, Barry, me, and all the worlds around the world are working hard at a fierce speed to position Scientific Games for the future. I have been in a new job now for eight months, but the talent and qualities of the global team members and leadership teams are in a very harsh macro economic environment, how all of them are in business. I have been very impressed by raising. It was very impressive to watch, and to be honest, I felt tight. Despite COVID, we have really energy and optimism, which is growing every day. Then, I want to move to the quarterly financial results.

In terms of sales, in terms of balance sheets and cash management, they continue to carry out hig h-level business. Today I would like to emphasize four important points. First, the profits and AEBITDAs have improved, despite the continuing closure and regulations. Lottery, Saplei, and Digital achieved a record high in the full year, and gaming improved again from the previous quarter. All teams around the world are working hard to optimize their businesses regardless of the economic environment and do what they can control themselves, and they are doing a great job. Second, each team continued to work on the management of balance sheets and driving capital, achieving a strong free cash flow in the quarter. The free cash flow has been $ 72 million, improving $ 20 million since the same period of the previous year. Third, we continued to commit to Deleverage, repaid the 111 million dollar revolver in the fourth quarter, and additionally repayed a $ 100 million revolver last month. Roughly speaking, we are focusing on taking the necessary measures for the balanced sheet dere ballage, and will continue to do so in the future. Fourth, we are continuing to manage cos t-based management seriously. As already mentioned, in the second quarter, we took measures to reduce operating costs and capital costs by $ 150 million as shor t-term measures. Since then, we have now considered $ 50 million costs. < SPAN> In terms of business, both balance sheets and cash management are continuing to carry out hig h-level business. Today I would like to emphasize four important points. First, the profits and AEBITDAs have improved, despite the continuing closure and regulations. Lottery, Saplei, and Digital achieved a record high in the full year, and gaming improved again from the previous quarter. All teams around the world are working hard to optimize their businesses regardless of the economic environment and do what they can control themselves, and they are doing a great job. Second, each team continued to work on the management of balance sheets and driving capital, achieving a strong free cash flow in the quarter. The free cash flow has been $ 72 million, improving $ 20 million since the same period of the previous year. Third, we continued to commit to Deleverage, repaid the 111 million dollar revolver in the fourth quarter, and additionally repayed a $ 100 million revolver last month. Roughly speaking, we are focusing on taking the necessary measures for the balanced sheet dere ballage, and will continue to do so in the future. Fourth, we are continuing to manage cos t-based management seriously. As already mentioned, in the second quarter, we took measures to reduce operating costs and capital costs by $ 150 million as shor t-term measures. Since then, we have now considered $ 50 million costs. In terms of sales, in terms of balance sheets and cash management, they continue to carry out hig h-level business. Today I would like to emphasize four important points. First, the profits and AEBITDAs have improved, despite the continuing closure and regulations. Lottery, Saplei, and Digital achieved a record high in the full year, and gaming improved again from the previous quarter. All teams around the world are working hard to optimize their businesses regardless of the economic environment and do what they can control themselves, and they are doing a great job. Second, each team continued to work on the management of balance sheets and driving capital, achieving a strong free cash flow in the quarter. The free cash flow has been $ 72 million, improving $ 20 million since the same period of the previous year. Third, we continued to commit to Deleverage, repaid the 111 million dollar revolver in the fourth quarter, and additionally repayed a $ 100 million revolver last month. Roughly speaking, we are focusing on taking the necessary measures for the balanced sheet dere ballage, and will continue to do so in the future. Fourth, we are continuing to manage cos t-based management seriously. As already mentioned, in the second quarter, we took measures to reduce operating costs and capital costs by $ 150 million as shor t-term measures. Since then, we have now considered $ 50 million costs.

For 2021, we are targeting an additional $50 million in permanent cost savings. This is what you can look at as cost savings that will be implemented in 2021 and beyond. These cost savings will be implemented in areas such as manufacturing and general procurement, facility footprint reduction, technology upgrades and system unification, and process and organizational simplification. We have already put in place various work streams and governance to deliver these savings while continuing to invest in our growing businesses. We will update you on our progress and keep you updated throughout the year.

Next, I will talk about our quarterly business unit performance. Starting with gaming, gaming saw sequential improvement across all business lines, with fourth quarter revenue up 24% compared to third quarter. Restrictions and closures were eased in October, but restrictions were tightened again in November and December as COVID cases spiked again. On a year-over-year basis, the fourth quarter saw a decline in revenue versus 2019, with revenue down 36% and AEBITDA down 50%. Also of note, there were no major openings or expansions in the fourth quarter, and our gaming segment, where approximately 70% of our North American installed base was active in the fourth quarter, saw strong year-over-year growth in coin-ins. Looking ahead, our gaming performance in the first quarter will continue to be impacted by closures and restrictions in the UK, Europe and Asia, as well as a slower overall recovery in our table business. However, we expect performance to improve beginning in the second quarter as vaccine rollout progresses and restrictions and closures are eased.

In our lottery business, the business remains resilient, with revenue growth of 10% and AEBITDA growth of 7% in the quarter. Major lottery initiatives such as SGEP, Retail Solutions and iLottery all helped drive top-line growth. Leads' new press is also coming online, allowing us to provide our customers with increased production capacity and new printing technology, which will contribute to improved customer profits.

Questions and Answers:

Operator

Now, turning to our digital division, we saw revenue increase 8% and AEBITDA increase 40% for the full year. Again, we saw great productivity from our digital teams around the world. They delivered another record full-year performance. This performance was driven by customer renewals and new acquisitions, as well as a growing pipeline of sportsbooks planned for rollout into 2021. EBITDA margin improvement was driven by these sportsbook updates as well as short-term COVID-driven austerity measures through 2021 -- sorry, 2020. As we discussed last quarter, our sports business today is primarily international and driven by a service and time-and-materials model. This model tends to create some bias in sequential revenue related to when we deliver our final solutions and related licenses to market. This timing impact benefited us in the third quarter but made comparisons more difficult in the fourth quarter. Additionally, on the expense side, the fourth quarter was impacted by increased spending related to our upcoming planned sportsbook expansion across the United States.

Next, I'll move on to debt, balance sheet management and free cash flow. We continue to focus on reducing leverage and maximizing free cash flow, including through active management of working capital. Net debt was $8. 4 billion, an improvement of $200 million from $8. 6 billion at the end of 2019. Again, we made very solid progress against a challenging macro backdrop. Weighted average cost of debt at year end was approximately 5%, down from 5. 8% at year end 2019. This decline was driven by the decline in LIBOR rates through 2020 and the refinancing of $2. 2 billion of 10% notes. In terms of our maturity profile, we have no debt maturing through 2024. Also of note, we ended the year with approximately $1. 3 billion of liquidity, an improvement of $363 million from year end 2019.

Finally, let's turn to free cash flow. Free cash flow for the quarter was $72 million and for the full year was $186 million. Free cash flow conversion for the full year was approximately 23%, compared to approximately 18% in 2019, an improvement of nearly 600 basis points year over year. Our improvement in free cash flow conversion was primarily due to a $230 million improvement in working capital, lower capital expenditures and lower cash interest expense. Capital expenditures for 2020 were $190 million, down $95 million year over year, below our third quarter guidance of $210 million to $225 million. Cash interest payments improved $78 million year over year due to lower average borrowing costs. To conclude my prepared comments today, I want to summarise some of the things that really excite us as Scientific Games builds its future. One, we are building a high-performing, winning culture and we are focused on delivering results. Despite the COVID resurgence, AEBITDA improved quarter-over-quarter and free cash flow conversion increased. Our balance sheet is healthier and we have deleveraged despite a challenging economic environment. We will continue to develop great content and continue to invest and expand in high-growth areas of the market. Our management team and board are strengthened and taking a long-term view. And we are in the midst of a strategic review of opportunities to drive growth to determine the best path forward to most effectively unlock the value of Scientific Games. Overall, I am pleased with our progress. And as a global Scientific Games organisation, I am excited to unlock the value of Scientific Games while delivering long-term value for our players, customers, employees and shareholders.

Barry Cottle -- President and Chief Executive Officer

[The first question is from John DeCree with Union Gaming. Please go ahead.

John DeCree -- Union Gaming Group -- Analyst

Next, I'll move on to debt, balance sheet management and free cash flow. We continue to focus on reducing leverage and maximizing free cash flow, including through active management of working capital. Net debt was $8. 4 billion, an improvement of $200 million from $8. 6 billion at the end of 2019. Again, we made very solid progress against a challenging macro backdrop. Weighted average cost of debt at year end was approximately 5%, down from 5. 8% at year end 2019. This decline was driven by the decline in LIBOR rates through 2020 and the refinancing of $2. 2 billion of 10% notes. In terms of our maturity profile, we have no debt maturing through 2024. Also of note, we ended the year with approximately $1. 3 billion of liquidity, an improvement of $363 million from year end 2019.

Barry cottl e-President and the highest executive officer

Barry Cottle -- President and Chief Executive Officer

Currently, from late 2020 to 2021, the initial signs of this initiative have begun to be seen. From a quarterly basis, the premium game business grew compared to the previous quarter. It grew from the second quarter to the third quarter and the fourth quarter. According to Irers, it boasts top percentage in sales of new games and game operations. Active fleet has grown 70 % in the fourth quarter and more than 80 % in the first quarter, and yields have risen from the same period of the previous year. This is due to "KASCADA", a product released for the first time from this group, "KASCADA" and "Coin Combo", which recorded 3 times the performance. In addition, we offer wonderful roadmaps at the end of the year, such as MURAL's wonderful cabinets and two wonderful games that follow. As a whole, John, I am very satisfied with the current situation. If you look over the field, there is an al l-star team, there is a correct game plan, and you are scoring in the early innings. Of course, the match is not over, but there is certainly a chance.

Next, I'll move on to debt, balance sheet management and free cash flow. We continue to focus on reducing leverage and maximizing free cash flow, including through active management of working capital. Net debt was $8. 4 billion, an improvement of $200 million from $8. 6 billion at the end of 2019. Again, we made very solid progress against a challenging macro backdrop. Weighted average cost of debt at year end was approximately 5%, down from 5. 8% at year end 2019. This decline was driven by the decline in LIBOR rates through 2020 and the refinancing of $2. 2 billion of 10% notes. In terms of our maturity profile, we have no debt maturing through 2024. Also of note, we ended the year with approximately $1. 3 billion of liquidity, an improvement of $363 million from year end 2019.

A little follo w-up. KASCADA has operated today. I launched. MURAL is another cabinet and will be released in the second half of this year. Is this correct?

Barry Cottle -- President and Chief Executive Officer

That's right. Cascada has been launched on the market and is still doing well today. And if you look at the presentation deck, you can see that MURAL is also in the market. These are the Game Market, the North American game business, and ultimately sales. See COIN COMBO and MONOPOLY released by MURAL and KASCADA. MURAL will release WILLY WONKA and 88 Fortunes.

Operator

Thank you, Barry. Mike, if you like [technical problem].

Barry Cottle -- President and Chief Executive Officer

Operator, lost.

Operator

Next, I'll move on to debt, balance sheet management and free cash flow. We continue to focus on reducing leverage and maximizing free cash flow, including through active management of working capital. Net debt was $8. 4 billion, an improvement of $200 million from $8. 6 billion at the end of 2019. Again, we made very solid progress against a challenging macro backdrop. Weighted average cost of debt at year end was approximately 5%, down from 5. 8% at year end 2019. This decline was driven by the decline in LIBOR rates through 2020 and the refinancing of $2. 2 billion of 10% notes. In terms of our maturity profile, we have no debt maturing through 2024. Also of note, we ended the year with approximately $1. 3 billion of liquidity, an improvement of $363 million from year end 2019.

Barry Cottl e-President and Sea

This year, I am so excited that SCIPLAY's chance to enter the casual game market in Solitia Pets Adventure. The market size of casual games has exceeded $ 20 billion, and we believe that there is a great chance to promote lon g-term growth. The acquisition of Come2Play and the Solitaire Pets Adventure not only purchased a simple monetary game based on the world's most popular card games, but also won a wonderful team based in Tel Aviv and Kiev. I was able to do it. I feel the great potential to promote monetary and engagement by connecting the Solitia Pets Adventure to SCIPLAY machines, data analysis, live operations, and marketing expertise. We succeeded in this strategy in Bingo Showdown, and in the first year we were able to triple the ru n-in revenue.

Operator

Jim Bombas e-Senior Vice President in charge of investor

very sorry. I would like to ask Michael about the improvement of driving capital in the current quarter. Also, can you tell us what is sustainable for 2021 and how to think about next year's driving capital?

Operator

Michael C. Eclan d-Executive Vice President, Sorry for the Supreme Financial Officer, Financial and Corporate Service. I would like to ask Michael about the improvement of driving capital in the current quarter. Also, can you tell us what is sustainable for 2021 and how to think about next year's driving capital?

Michael C. Eclan d-Executive Vice President, Supreme Finance Officer, Finance and Corporate Service

John, I promise I didn't tell Jim to hang up there because you were going to ask me a question. It was great to talk to you. Thanks for asking about working capital. For us, working capital, free cash flow is becoming a mantra within the organization. We've been saying it a lot internally lately: Cash is king. Cash is a big driver of shareholder value and we're very focused on it. And as a result, we're very pleased with the progress that our team has made over the last year. Obviously, as a result of what we've presented to the board, we delivered fourth quarter free cash flow of $72 million and full year free cash flow of $186 million. Fourth quarter free cash flow was $72 million and full year free cash flow was $186 million. Free cash flow conversion was 23% and AEBITDA was up 600 basis points year over year. We talked a lot about working capital in the second quarter, the third quarter, and just chasing all of our working capital accounts, DSO, DPO, DSI and just regular sanitation, our working capital improved by $230 million year over year. Our treasury team did a great job on our cost of debt, bringing our cost of debt down from 5. 8% last year to 5%, freeing up $78 million. And so our liquidity is up $363 million year over year to $1. 3 billion, which we're happy with. Going forward, it goes without saying that liquidity remains our No. 1 priority. It's not going to be one thing. It's just a matter of doing little things.

Barry Cottle -- President and Chief Executive Officer

Jim Bombas e-Senior Vice President in charge of investor

Michael C. Eclan d-Executive Vice President, Supreme Finance Officer, Finance and Corporate Service

Operator

Barry Cottle -- President and Chief Executive Officer

Barry Jona s-Trueist Securities - Analyst

Michael C. Eclan d-Executive Vice President, Supreme Finance Officer, Finance and Corporate Service

Barry Cottl e-President and CEO

Barry Cottle -- President and Chief Executive Officer

Barry Jona s-Trueist Securities - Analyst

Michael C. Eclan d-Executive Vice President, Supreme Finance Officer, Finance and Corporate Service

Barry Cottl e-President and Sea Executive Officer < SPAN> By providing content suitable for each market, you can continue to win. As a result, working funds are quite bullish. We are satisfied with the team's efforts so far, and we will continue to work on the highest priority.

Operator

Operator, move to the next question:

Operator

The next question is Barry Jonas of Trueist Securities. please.

Barry Cottle -- President and Chief Executive Officer

Hello. First of all, I would like to ask about cashless gaming. What kind of strategy was the background of the cros s-license agreement with IGT? Also, if you have any more thinking about a larger market opportunity, please let us know. thank you.

Operator

thank you. Let me see if the question is correct. The first I asked about cashless, what is the second?

Barry Cottle -- President and Chief Executive Officer

If you have any more thinking about cashless market opportunities, please let us know.

Operator

Jim Bombas e-Senior Vice President in charge of investor

Operator

Operator

The next question is Barry Jonas of Trueist Securities. please.

Barry Jona s-Trueist Securities - Analyst

Barry Cottle -- President and Chief Executive Officer

Barry Cottl e-President and CEO

The next question is Barry Jonas of Trueist Securities. please.

Barry Jona s-Trueist Securities - Analyst

Barry Cottle -- President and Chief Executive Officer

Barry Cottl e-President and Sea

The next question is Barry Jonas of Trueist Securities. please.

Okay. And then, let me just ask you one more question on gaming and product sales. What is the outlook as you talk to your customers about '21? On the one hand, we're hearing that COVID concerns may linger and slot floors may be smaller. On the other hand, we have the vaccine and operators seem to be more focused on gaming VIP players and maybe a little more discerning about new slot products. What is your outlook for this year?

Barry Cottle -- President and Chief Executive Officer

Operator

Barry Jona s-Trueist Securities - Analyst

wonderful. Thank you, Barry.

Operator

Barry Cottle -- President and Chief Executive Officer

Chad Bayno n-Macquerley Securities US A-Analyst < Span> Yeah, obviously fluid. So I don't want to guess much about future macro environmental trends. But let me tell you what we are seeing, no, what we should not see in the immediate trends. However, it should be said that what we are seeing, that is, this phenomenon is not seen in the immediate trend. As you know, our customers are mainly tribal regional, which accounts for 95 % of our business, and 80 % of their profits are slots. In particular, other businesses such as bars, lounges and restaurants are also affected by COVID. However, it has improved sequentially in the second quarter, the third quarter, and the fourth quarter. This is also reflected in the sales trends of premium games. Game sales continue to improve in the situation where COVID has revived during the holiday season. Also, as I mentioned earlier, the current fleet (technical task) has reached 70%to 80%in the first quarter, and the yield has been growing. We are also the highest percentage of premium games and WAP games, which are the highest percentage of premium games and WAP games, for each of the new products of this team, and for each new product I mentioned earlier. I am confident in this roadmap. It's always

wonderful. Thank you, Barry.

wonderful. Thank you, Barry.

Barry Cottle -- President and Chief Executive Officer

The next question is Macquerley's Chad Baynon. please.

wonderful. Thank you, Barry.

Barry Jona s-Trueist Securities - Analyst

Barry Cottle -- President and Chief Executive Officer

Operator

wonderful. Thank you, Barry.

Chad Bayno n-Macquerley Securities USA - Analyst

Barry Cottle -- President and Chief Executive Officer

Barry Cottle -- President and CEO

Operator

Chad Beynon -- Macquarie Securities USA -- Analyst

I agree. I would also like to mention the I-Lotto, which is another growth industry and a growth driver. There is also a question whether ILottery has a synergistic effect with Igaming. Both ILottery and Igaming are provided in Pennsylvania. And I think you have emphasized a fairly powerful result in Ilottery, so you can make sure that you are just a good growth driver for you and for the state. mosquito? Are you convinced that more states will aim for legalization in the future? thank you.

Barry Cottl e-President and Sea

Barry Cottle -- President and Chief Executive Officer

Chad Bayno n-Macquerley Securities USA - Analyst

I agree. I would also like to mention the I-Lotto, which is another growth industry and a growth driver. There is also a question whether ILottery has a synergistic effect with Igaming. Both ILottery and Igaming are provided in Pennsylvania. And I think you have emphasized a fairly powerful result in Ilottery, so you can make sure that you are just a good growth driver for you and for the state. mosquito? Are you convinced that more states will aim for legalization in the future? thank you.

Operator

Barry Cottle -- President and Chief Executive Officer

David Kat s-Jeffreie s-Analyst

I agree. I would also like to mention the I-Lotto, which is another growth industry and a growth driver. There is also a question whether ILottery has a synergistic effect with Igaming. Both ILottery and Igaming are provided in Pennsylvania. And I think you have emphasized a fairly powerful result in Ilottery, so you can make sure that you are just a good growth driver for you and for the state. mosquito? Are you convinced that more states will aim for legalization in the future? thank you.

Barry Cottl e-President and CEO

Barry Cottle -- President and Chief Executive Officer

Operator

thank you. The second question is about the digital aspects of the business. There are so many functions, from social sports to real money. Is there a specific ability or other way to strategically enhance positioning in these digital businesses? Also, do you think about enhancing your positioning, such as M & Amp; A and tac k-in?

Barry Cottle -- President and Chief Executive Officer

We are constantly looking for gaps in product portfolios and products in such properties. In the field of digital and sports betting, I gave a big bet a few years ago with NYX and open beds. But we are always looking for a gap between human resources and portfolio. So I can't sleep at night. We always want to grow and be active.

Jim Bombas e-Senior Vice President in charge of investor

I am too. thank you. congratulations.

Operator

Operator

The next question is Stifel's Jeff Stantial. please.

Call participants:

Jim Bombas e-Senior Vice President in charge of investor

Barry Cottle -- President and Chief Executive Officer

This year, I am so excited that SCIPLAY's chance to enter the casual game market in Solitia Pets Adventure. The market size of casual games has exceeded $ 20 billion, and we believe that there is a great chance to promote lon g-term growth. The acquisition of Come2Play and the Solitaire Pets Adventure not only purchased a simple monetary game based on the world's most popular card games, but also won a wonderful team based in Tel Aviv and Kiev. I was able to do it. I feel the great potential to promote monetary and engagement by connecting the Solitia Pets Adventure to SCIPLAY machines, data analysis, live operations, and marketing expertise. We succeeded in this strategy in Bingo Showdown, and in the first year we were able to triple the ru n-in revenue.

Next, I'll move on to debt, balance sheet management and free cash flow. We continue to focus on reducing leverage and maximizing free cash flow, including through active management of working capital. Net debt was $8. 4 billion, an improvement of $200 million from $8. 6 billion at the end of 2019. Again, we made very solid progress against a challenging macro backdrop. Weighted average cost of debt at year end was approximately 5%, down from 5. 8% at year end 2019. This decline was driven by the decline in LIBOR rates through 2020 and the refinancing of $2. 2 billion of 10% notes. In terms of our maturity profile, we have no debt maturing through 2024. Also of note, we ended the year with approximately $1. 3 billion of liquidity, an improvement of $363 million from year end 2019.

Michael C. Eclan d-Executive Vice President, Supreme Finance Officer, Finance and Corporate Service

Operator

The next question is Barry Jonas of Trueist Securities. please.

wonderful. Thank you, Barry.

I agree. I would also like to mention the I-Lotto, which is another growth industry and a growth driver. There is also a question whether ILottery has a synergistic effect with Igaming. Both ILottery and Igaming are provided in Pennsylvania. And I think you have emphasized a fairly powerful result in Ilottery, so you can make sure that you are just a good growth driver for you and for the state. mosquito? Are you convinced that more states will aim for legalization in the future? thank you.

Okay. Thank you. And then I'll turn to SciPlay, and I think we'll get more details on that later on in the call. But while you're here, I just want to get your latest high-level thinking. What market opportunity do you think your expansion into the casual gaming genre creates? And how do you plan to compete against current players? That's all from me. Thank you.

Barry Cottle -- President and CEO

Social Impact & Sustainability

Okay, great. Good question. I think this is a very smart move. Number one, we saw this as an opportunity to expand into the $20 billion casual gaming genre, and there are a lot of winners there. And if you're looking for a casual game, then we have the right playbook to enter that casual space. If you think about it, slots are a compelling, simple core loop, solitaire is a simple core loop. So what we were looking for in the casual space is games and teams that know how to build and understand that genre, that simple core look, that evergreen -- again, evergreen -- and then plug them into the analytics, live ops, UA monetization machine that Cyplay has. And the great thing is, we have the playbook to enter the casual space, and we have something that we've actually done before. If you think about it, bingo is a multi-card, simple loop game that's totally different from slots, but we entered that game and tripled our revenue within a year. Bingo is a multi-card, simple loop game that's totally different from slots. Jeff Stanshall -- Stifel Nicolaus & Co. -- Analyst

Thank you, and congratulations on a strong quarter.

Barry Cottle -- President and CEO

Thank you, operator. We have time for one more question.

Operator

We Believe In Our People

got it. The last question is Ryan Sigdal of Craig-Hallum. please.

Ryan Sigda l-Craig Haru m-Analyst

wonderful. Michael, Barry, thank you. I am also very happy that there was a reassuring progress on the strategic evaluation process. Immediately, I want to jump into digital. We bless that we have improved our performance without interruption during the Super Bowl period. One of your major competitors at your company has caused a power outage that many businesses have attracted attention. As a result, did you bring a new customer opportunity to your company? Also, please tell us that you have learned how to fin e-tunes the technology in the UK and have been able to work well in the UK for many years.

Barry Cotttl e-President and Sea

got it. The last question is Ryan Sigdal of Craig-Hallum. please.

Ryan Sigda l-Craig Haru m-Analyst

• wonderful. Michael, Barry, thank you. I am also very happy that there was a reassuring progress on the strategic evaluation process. Immediately, I want to jump into digital. We bless that we have improved our performance without interruption during the Super Bowl period. One of your major competitors at your company has caused a power outage that many businesses have attracted attention. As a result, did you bring a new customer opportunity to your company? Also, please tell us that you have learned how to fin e-tunes the technology in the UK and have been able to work well in the UK for many years.
• Barry Cotttl e-President and Sea
• got it. The last question is Ryan Sigdal of Craig-Hallum. please.
• Ryan Sigda l-Craig Haru m-Analyst

wonderful. Michael, Barry, thank you. I am also very happy that there was a reassuring progress on the strategic evaluation process. Immediately, I want to jump into digital. We bless that we have improved our performance without interruption during the Super Bowl period. One of your major competitors at your company has caused a power outage that many businesses have attracted attention. As a result, did you bring a new customer opportunity to your company? Also, please tell us that you have learned how to fin e-tunes the technology in the UK and have been able to work well in the UK for many years.

• Barry cottl e-President and the highest executive officer
• Yes, of course. That's a good question. Let's start with the first question. What we have actually operated in Europe for decades and decades, must provide highly reliable, stable and customizable solutions so that businesses can compete in the market. That means that it will not be broken. However, it is also necessary to provide a flexible service that allows businesses to differentiate. In the UK, we were able to achieve it with "Indecipherable" in the United Kingdom for years and years. The Super Bowl was survived intact, but before that, he survived the Melbourne Cup and participated in the Grand North in the UK. Super Bowl is a new example of technology cultivated for many years in today's market. Operators want to integrate the best core elements of technical solutions to provide the best products in the market. Therefore, we continue to create the best products and have the mentality of winning for a long time. Returning to the first question, in terms of growth, we believe that macr o-based factors and market factors are still leading our growth. First, new markets and states are increasing as COVID continues to increase their interest in legalization. We have a new contract from European providers from everywhere. < SPAN> Yes, of course. That's a good question. Let's start with the first question. What we have actually operated in Europe for decades and decades, must provide highly reliable, stable and customizable solutions so that businesses can compete in the market. That means that it will not be broken. However, it is also necessary to provide a flexible service that allows businesses to differentiate. In the UK, we were able to achieve it with "Indecipherable" in the United Kingdom for years and years. The Super Bowl was survived intact, but before that, he survived the Melbourne Cup and participated in the Grand North in the UK. Super Bowl is a new example of technology cultivated for many years in today's market. Operators want to integrate the best core elements of technical solutions to provide the best products in the market. Therefore, we continue to create the best products and have the mentality of winning for a long time. Returning to the first question, in terms of growth, we believe that macr o-based factors and market factors are still leading our growth. First, new markets and states are increasing as COVID continues to increase their interest in legalization. We have a new contract from European providers from everywhere. Yes, of course. That's a good question. Let's start with the first question. What we have actually operated in Europe for decades and decades, must provide highly reliable, stable and customizable solutions so that businesses can compete in the market. That means that it will not be broken. However, it is also necessary to provide a flexible service that allows businesses to differentiate. In the UK, we were able to achieve it with "Indecipherable" in the United Kingdom for years and years. The Super Bowl was survived intact, but before that, he survived the Melbourne Cup and participated in the Grand North in the UK. The Super Bowl is a new example of technology cultivated for many years in today's market. Operators want to integrate the best core elements of technology solutions to provide the best products in the market. Therefore, we continue to create the best products and have the mentality of winning for a long time. Returning to the first question, in terms of growth, we believe that macr o-based factors and market factors are still leading our growth. First, new markets and states are increasing as COVID continues to increase their interest in legalization. We have a new contract from European providers from everywhere.
• In addition, we continue to announce new products such as bed building. For that reason, we continue to work to grow the market.
• Ryan Sigda l-Craig Haru m-Analyst
• wonderful. There is one supplement for IGT cashless. Is it ... Go to Market a joint operation method? Do you share your technology and earn customers in different ways and monetize them?

Barry Cottl e-President and CEO

The latter. We are in charge of the IT department, but this solution is an extension of the system business that provides cashless last mile. So, as I mentioned earlier, our solutions are actually put into the market. But by combining us with IPs, both companies have very comprehensive IPs, so you can create the best market solutions as possible for players as possible.

Ryan Sigda l-Craig Haru m-Analyst

We Believe In Protecting The Environment

thank you. I pray for good luck.

Barry cottl e-President and the highest executive officer

Operator

This concludes the Q & A session. I will replace Barry Cotttle's closing.

Barry Cottl e-President and CEO

Thank you for gathering at today's telephone conference. In the Scientific Games, we are all very excited about the future path. As a result of optimizing portfolios, dere barbaining businesses, and capitaling in major growth fields to deliver large returns to shareholders, we have a new energy and optimism. Masu. We look forward to the report of progress in the future in the future, to release the value of Scientific Games. Thank you for your support.

• Jim Bombas e-Senior Vice President in charge of investor
• Thank you to everyone. If you have any questions, we will accept it by phone.
• Operator
• [Operator closing greeting]
• 55 minutes required
• Jim Bombas e-Senior Vice President in charge of investor

Barry Cottl e-President and Sea

Michael C. Eklan d-Executive Vice President, Supreme Finance Officer, Finance and Corporate Scratch

John Decr y-Union Gaming Grou p-Analyst

Barry Jona s-Trueist Securitie s-Analyst

Chad Bayno n-Macquerley Securities Compan y-Analyst

• David Kat s-Jeffreie s-Analyst
• Jeff Stunnin g-STIFEL NICOLAUS & amp; Company - Analyst

Ryan Sigda l-Craig Haru m-Analyst

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• Feltitta Entertainment has attracted the business world in 1980, from the opening of the Gulf Seafood Restaurant in Katie, Texas to a large company that has a worldwide restaurant, hospitality and entertainment brand. I have done it.
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