Scientific Games reduces operating loss
Scientific Games, the casino equipment maker and lottery services provider, increased revenue and decreased losses during the final quarter of 2016.
In a trading update, the Las Vegas-based company said revenue rose by 2% year-on-year to $752 million (€715 million) thanks to a 52% increase in social B2C gaming and a 37% increase in table products.
Attributable earnings before interest, taxation, depreciation and amortisation (EBITDA) was almost identical to Q4 2015 at just over $290 million, while operating loss was $12 million, compared to $54 million in the prior-year period.
The firm said the 2016 Q4 operating loss included a $69 million non-cash goodwill impairment charge and restructuring; and other charges of $36 million.
Net loss for the three months to December 31 decreased by 13% year-on-year to $111 million.
“The 2016 fourth quarter was the fifth consecutive quarter of growth, with year-over-year revenue growth besting last year’s strong performance,” said Kevin Sheehan, Scientific Games’ chief executive.
“Our gaming division continues to lead with innovation and strong execution, including the launch of the Gamescape platform, which in the fourth quarter helped drive the first quarterly sequential increase in our wide-area progressive (WAP) premium-participation installed base in more than three years, as well as the initial very promising performance of our innovative TwinStar J43 for-sale gaming cabinet.”
Scientific Games’ gaming segment saw total revenue down almost 2% to $460 million, while gaming machine sales revenue declined nearly 3% to $170 million.
Total revenue for its interactive division increased by 52% year-on-year to $92 million.
For full-year 2016, the Nasdaq-listed company said its revenue grew by 4.5% in year-on-year terms to $2.9 billion.
Operating income was $130.6 million compared to an operating loss of $1.0 billion in 2015. Net loss for the full year narrowed to US$354 million, compared to US$1.4 billion in the previous year.
Scientific Games chief financial officer Michael Quartieri said: “We continue to refine our business processes to yield greater financial discipline, while ensuring continued investment in innovation to drive profitable growth.
“While improvement initiatives implemented in the fourth quarter had a cash cost of $6 million, we expect these actions will expand our margins and cash flow in 2017.”
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