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SG reports significantly narrowed net loss in 2016
Scientific Games Corp. reported a narrowed net loss of $353.7 million for the year ended Dec. 31, 2016, compared to a net loss of $1.4 billion in the prior year.
For the full-year 2016, the company reported a 5 percent increase in revenue to $2.9 billion.
In 16Q4, the company reported a two percent increase in revenue to $752.2 million.
The results include a 52 percent increase in social B2C gaming, as well as a 37 percent increase in table products and come despite a $12.2 million unfavorable currency translation, said the company in a report.
Operating loss was $12.3 million, narrowing in comparison to a loss of $54.4 million in the prior-year period. Net loss decreased to $110.8 million compared to a net loss of $127.5 million in 15Q4.
"The 2016 fourth quarter was the fifth consecutive quarter of growth with year-over-year revenue growth besting last year's strong performance," said Scientific Games CEO Kevin Sheehan.
"Our Gaming division continues to lead with innovation and strong execution… [While] our Lottery division extended its steady momentum with several big contract wins and successful systems launches in the U.S. and around the world. Our SG Interactive performance remains stellar, with the exciting play of our social game apps driving social B2C gaming revenue up 52 percent versus the year-ago quarter. A third-party report estimates that the rapid growth of SG Interactive in its B2C business has led to five consecutive quarters of outperforming the social casino market, including fourth quarter 2016 year-over-year growth that was five times the social gaming industry growth."
Sheehan said the focus in 2017 will be to drive innovation and create new differentiated products for customers.
Scientific Games CFO Michael Quartieri added, "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. Importantly, in early 2017 we took steps that reduced our annual cash interest burden by approximately $30 million at current rates, while extending the average maturity of our capital structure. We expect these steps will yield a planned increase in cash flow that supports our goal of additional deleveraging in 2017."
Kevin Sheehan
Michael Quartieri
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