International gaming giant Scientific Games Corporation says it expects a 9% year-on-year increase in consolidated revenue to between US$820 and US$825 million for the three months to 31 December 2017.
The company released its preliminary fourth quarter results late Wednesday in advance of a potential refinancing transaction, in which it plans to take advantage of favorable market conditions to refinance approximately US$1.4 billion of its outstanding 7.000% senior secured notes due 2022 and US$185 million of borrowings under its revolving credit facility with a combination of new senior secured term loans and new senior secured notes, as well as approximately US$300 million of new senior unsecured notes.
The 4Q17 results would push Scientific Games’ full year revenue to between US$3.081 billion and US$3.086 billion – an increase of around 7% on 2016 revenue of US$2.883 billion.
The company said it expects its net loss for the fourth quarter to fall in the range of approximately US$40 to US $50 million, inclusive of a projected US$28 million of restructuring and other charges which primarily includes M&A costs associated with the acquisition of NYX Gaming Group on 5 January 2018. The full year net loss is expected to be between US$238 and US$248 million, narrowed from US$354 million in 2016.
Likewise, Scientific Games expects 4Q17 Attributable EBITDA of between US$320 to US$325 million and full year Attributable EBITDA of US$1.220 billion to US$1.225 billion, up from US$294 million and US$1.104 billion respectively in 2016.
“Our preliminary results for the fourth quarter 2017 reflect our focus on generating top-line growth and ongoing improvements across our gaming, lottery and interactive operations,” said Kevin Sheehan, CEO and President of Scientific Games. “I am proud of the dedication and success achieved by the collaborative efforts of our Scientific Games colleagues around the globe who continue to empower our customers and deliver success for all our stakeholders.”
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