Scientific Games issues Q4 and FY 2017 trading update
News on 25 Jan 2018
News on 25 Jan 2018
The major gambling supply and games provider Scientific Games Corporation has posted a trading update covering the fourth quarter and full year ended December 31, 2017.
The company says it expects consolidated revenue to increase approximately 9 percent to a range of approximately $820-to-$825 million for the three month period ended December 31, 2017, and full year 2017 revenue to grow approximately 7 percent and be in a range of approximately $3,081-to-$3,086 million compared to $752 million and $2,883 million for the fourth quarter and full year 2016, respectively.
Net loss for the fourth quarter 2017 will be in a range of approximately $40-to-$50 million, inclusive of a projected $28 million of restructuring and other charges, which primarily includes M&A costs associated with the NYX Gaming Group transaction that was completed on January 5, 2018.
Full year 2017 net loss is expected to be in a range of approximately $238-to-$248 million.
Fourth quarter 2016 net loss was $111 million and full year 2016 net loss was $354 million.
Fourth quarter 2017 Attributable EBITDA is expected to be approximately $320-to-$325 million with full year 2017 AEBITDA of approximately $1,220-to-$1,225 million. Fourth quarter 2016 AEBITDA was $294 million and full year 2016 AEBITDA was $1,104 million.
“Our preliminary results for the fourth quarter 2017 reflect our focus on generating top-line growth and ongoing improvements across our gaming, lottery and interactive operations,” said Kevin Sheehan, CEO and President of Scientific Games.
Scientific Games notes that it is sharing the preliminary financials with prospective lenders as it seeks a potential refinancing deal to take advantage of favourable market conditions.
Such a deal would refinance approximately $1,400 million of SG’s outstanding 7 percent senior secured notes due 2022 and approximately $185 million of borrowings under its revolving credit facility with a combination of new senior secured term loans and new senior secured notes, as well as approximately $300 million of new senior unsecured notes.
