Scientific Games revenue climbs to $3.4 billion in full year 2019

Scientific Games Corporation reported Tuesday results for the fourth quarter and full year ended December 31, 2019.

Fourth-quarter revenue was $863 million, compared to $886 million in the prior year period. This was largely driven by lower gaming revenue, primarily due to fewer systems launches in Canada compared to last year and lower machine unit sales.

Net loss was $37 million compared to net income of $207 million in the prior year period. This quarter included a $40 million loss on a debt financing transaction related to the notes offering and a $12 million loss on remeasurement of Euro-denominated debt. The prior year included a $183 million reversal of a reserve related to resolving the Shuffle Tech legal matter and a $14 million gain on remeasurement of Euro-denominated debt.

Consolidated Adjusted EBITDA (AEBITDA) was $328 million compared to $343 million in the prior year period driven by lower Lottery and Gaming AEBITDA, which was partially offset by Digital AEBITDA of $21 million, representing a 75% increase.

Net cash provided by operating activities increased by $153 million from the prior year period to $143 million. The prior year included a $152 million payment to resolve the Shuffle Tech legal matter.

In full-year 2019, revenue increased by $37 million to $3.4 billion compared to the prior year. Net loss was $118 million, an improvement of $234 million. The prior year included a $152 million charge related to resolving the Shuffle Tech legal matter.

Consolidated AEBITDA increased to $1,334 million from $1,330 million in the prior year, driven by growth in the company's Lottery, SciPlay and Digital segments largely offset by Gaming. Net cash provided by operating activities increased $200 million to $546 million compared to the prior year, which included resolution of the Shuffle Tech legal matter.

Barry Cottle, CEO and President of Scientific Games, said: "This past year, we made great strides in developing the best games, attracting industry leading talent, and improving our capital structure. I'm confident we have the right team in place to reach our goal to be the market leader across land-based gaming, lottery, sports and digital gaming driven by leading content and the platforms that enable play anywhere and anytime. Our recent contract and deal wins across our businesses, and the globe, highlight that we are on the right path."

Michael Quartieri, Chief Financial Officer of Scientific Games, added: "We reduced our net debt by over $460 million in 2019, while successfully completing two refinancing transactions that will significantly reduce our cash interest costs going forward and extended our maturities. Our overarching commitment remains delevering through organic growth, new market opportunities, and driving further enhancements to our free cash flow."