Scientific Games Revenue Rises Q4 2017David Burgundy | 08 Mar 2018
In its final financial report for 2017, Vegas-based international gaming conglomerate, Scientific Games has announced a 9% revenue increase during Quarter 4 of last year.
The report reveals that the NASDAQ-listed supplier of gambling products and services posted US$823 million revenues for the fourth quarter of 2017. This is up from the US$752.2 million brought in during the same period in the preceding year.
Companywide Revenue Increases
As the aforementioned report shows, Scientific Games’s 9% fourth quarter overall revenue increase is comprised of increases in all of the company’s various sectors and divisions. These include the gaming segment, the lottery segment, and the highly lucrative interactive division.
Gaming segment revenues rose 7% to US$492.5 million, whilst there was a 9% uptake in lottery revenue to reach US$217.2 million. The greatest revenue growth, however, was seen in the Scientific Games interactive division, which brought in US$113.3 million (up by 24% from 2016) during Quarter 4 of 2017.
Decreased Losses and Increased Operating Income
As part of its considerable revenue increase in the final quarter of 2017, Scientific Games enjoyed a US$97.2 million operating income, up from a US$12.3 million loss during Quarter 4 of 2016. In fact, net losses of US$110.8 million in 2016 Q4 reduced to US$43.1 million by the end of 2017.
Meanwhile, attributable earnings before interest, taxes, depreciation, and amortization (AEBITDA) rose by 11% year-on-year, up from its high of US$293.5 million in 2016 to US$324.5 million during the same period last year.
Scientific Games issued a statement along with the report, in which CEO and President, Kevin Sheehan asserts that the company’s Quarter 4 2017 results are indicative of the advances made in terms of AEBITDA, revenue and operating income growth across all business segments over the period.
Positive Full-Year 2017 Results
Alongside the Quarter 4 report, Scientific Games has also published its full-year financial figures for 2017. These full-year figures show a 7% year-on-year increase in revenues, for total revenue of US$3 083.6 million last year.
Furthermore, net losses dropped from the US$353.7 million during 2016 to $242.3 million, whilst operating income increased by close to 200% to $393.1 million in 2017. Finally, the figures indicate an 11% uptake in AEBITDA to US$1 224.9 million over the course of 2017.
Moving into 2018
In the report’s accompanying statement, Scientific Games Chief Financial Officer, Michael Quartieri explained that, thanks to the company’s improved performance, it was able to successfully refinance a portion of its capital structure in 2018. This has made the cost of capital considerably lower and will increase future cash flow.
Both Quartieri and Sheehan expressed Scientific Games’s belief in its potential to build on these successes in 2018 and for many years thereafter on its committed path to growing and deleveraging the company.