SciPlay 10-Q: Q2 2022

SciPlay reported a robust Q2 FY2022, with revenue climbing 44 % year‑over‑year to $160.1 million. The growth was largely driven by a 20 % increase in mobile in‑app sales, supported by higher advertising revenue following the acquisition of 80 % of Turkish hyper‑casual studio Alictus. The purchase added $133.5 million in consideration and significant intangible assets, including goodwill of $92.7 million, while the company’s effective tax rate remained low at roughly 4–5 % due to its partnership structure.

Operating income rose to $33 million, but net income attributable to SciPlay fell to $5.75 million because of a larger noncontrolling interest share and higher restructuring costs. Net‑income margins slipped to 20.2 % from 24.6 %, and EBITDA margin declined by 5.4–3.9 percentage points, reflecting sharp increases in sales & marketing and R&D expenses. Cash balances decreased from $364 million to $316 million, largely due to the $106 million acquisition and a $7.1 million treasury‑stock purchase under a new $60 million share‑repurchase program.

The company’s debt‑related liabilities remained unchanged at $64.7 million, and it continues to consolidate SciPlay Parent LLC as a variable‑interest entity. Cash flow from operations stayed positive, but investing cash outflows were dominated by the Alictus acquisition. Financing activity was largely offset by reduced distributions and share repurchases, leaving SciPlay compliant with its revolver covenants while potentially requiring additional financing to sustain future growth and acquisitions.