Scientific Games reports broad growth in 2017

Fourth quarter and FY 2017 reports from Scientific Games Wednesday show that net loss declined to $43.1 million from $110.8 million in the prior-year period, reflecting improvements in operating income and a $14.8 million decrease in interest expense. The improvement was partially offset by a $62.1 million decline in income tax benefit.

Q-4 kpis included:

* Revenue up 9 percent y-o-y at $823 million;

* Growth achieved in all three business segments, with Gaming segment revenue up 7 percent to a quarterly record $492.5 million; Lottery segment revenue up 9 percent to $217.2 million led by a quarterly record level of instant games revenue; and the Interactive segment generated ongoing strong revenue growth of 24 percent to $113.3 million;

* Total interactive revenue reflected a 28 percent increase in social gaming B2C revenue due to the ongoing popularity of the Jackpot Party Social Casino and Quick Hit Slots apps, coupled with the growing success of more recent apps, such as the 88 Fortunes app launched in the first quarter of 2017, and the contribution of the Bingo Showdown app, acquired in April 2017.

* Foreign exchange had a $10.3 million favourable impact on revenue;

* Operating income in the fourth quarter increased to $97.2 million from an operating loss of $12.3 million a year ago;

* Attributable EBITDA increased 11 percent to $324.5 million; AEBITDA margin rose 39.4 percent from 39 percent a year ago;

* Net cash provided by operating activities increased $41.9 million to $118.1 million from a year ago;

* The company recently completed refinancing transactions that will result in an approximate $69 million reduction in annualised cash interest costs at current interest rates and extended a portion of its debt maturities.

FY 2017 highlights included:

* Revenue up 7 percent year over year to $3,083.6 million;

* Operating income was $393.1 million compared to $130.6 million in the prior year, which included the $69.0 million goodwill impairment;

* Net loss was $242.3 million compared with a net loss of $353.7 million a year ago;

* AEBITDA increased 11 percent to $1,224.9 million compared with $1,103.6 million in the prior year;

* Net cash from operating activities increased to $507.1 million compared with $419.0 million in the prior year;

* Free cash flow rose to $179.5 million from $120.0 million in the prior year;

“Our results in the fourth quarter 2017 reflect the improvements achieved in revenue, operating income and AEBITDA growth by each of our business segments,” said Kevin Sheehan, CEO and President of Scientific Games.

“For 2018, we believe the company is well positioned to continue to grow and build on the success attained in the past year.”