SciPlay Reports Fourth Quarter Results and Full Year 2019 Results

LAS VEGAS, Feb. 18, 2020 /PRNewswire/ — SciPlay Corporation (NASDAQ: SCPL) (“SciPlay” or the “Company”) today reported results for the fourth quarter and year ended December 31, 2019.

Fourth Quarter 2019 Financial Highlights

Fourth quarter revenue was $112.9 million, which included a negative $6.3 million impact from an out of period adjustment recorded during the fourth quarter versus $113.7 million in the prior year period. Mobile revenue was $98.2 million including a negative $2.4 million from the same adjustment. Mobile revenue established a quarterly record.
Net income was $28.6 million including a negative $3.6 million impact from the adjustment mentioned above. Net income margin was 25.3%, up from $18.7 million and 16.4%.
AEBITDA, a non-GAAP financial measure defined below, was $32.1 million, including a negative $4.4 million impact from the adjustment mentioned above, an increase of 31.0%, AEBITDA margin, a non-GAAP financial measure defined below, was 28.4%, an increase of 690 bps.
Net cash provided by operating activities was $32.7 million reflecting strong results and includes a $3.0 million payment related to contingent acquisition consideration.
Cash and cash equivalents increased $29.3 million to $110.6 million from the third quarter 2019.

Full Year 2019 Financial Highlights

Revenue grew 11.9% to $465.8 million, beating the market growth rate of 8.1% estimated by Eilers and Krejcik. Full year revenue included a negative $4.2 million adjustment in the fourth quarter to correct data errors from inception through 2018 primarily relating to our previous process for recording revenue related to foreign transactions. Absent this adjustment, the Company would have met its revenue guidance of $470-475 million for the year.
Net income increased $54.5 million to $93.5 million, which includes a negative $2.3 million impact from the adjustment described above. Net income margin of 20.1%, was up from 9.4%.
AEBITDA, a non-GAAP financial measure defined below, was $122.3 million, including a negative $2.9 million impact from the adjustment described above, an increase of 30.1%, and AEBITDA margin, a non-GAAP financial measure defined below, was 26.3%, an increase of 370 bps.
Net cash provided by operating activities was $93.0 million reflecting strong results and includes $25.2 million of payments related to contingent acquisition consideration.
Cash and cash equivalents increased by over $100 million to $110.6 million as of year-end 2019.

Fourth Quarter Key Performance Highlights

Payer conversion rates remained strong at 6.0% validating our continued focus on live operations to drive increased player interaction with the games.
Average monthly revenue per paying user increased 15.3% to $88.06.
ARPDAU increased 8.7% from the prior year period to $0.50.
Mobile penetration increased 300 basis points from the prior year to 84%.
Jackpot Party is in the Top 3 for the Social Casino Games Category in the latest report by Eilers & Krejcik.
Successfully re-launched Gold Fish Casino and MONOPOLY Slots during the fourth quarter with new updates and features.

Josh Wilson, Chief Executive Officer of SciPlay, said, “We grew our annual revenue by 12%, beating the market growth rate by nearly 1.5 times, and delivered a 30% increase in AEBITDA. We increased ARPDAU 9% to $0.50 and average monthly revenue per payer increased 15% to a quarterly record of $88.06. We believe we are in the very early stages of a multi-year revenue growth and earnings expansion cycle at SciPlay, and we couldn’t be more excited by our future prospects and opportunities.”

Mike Cody, Chief Financial Officer of SciPlay, added, “The strong profitability and cash generation this quarter highlight the strength of our evergreen franchises and business model. We are excited about our organic opportunities as well as the flexibility we have through our balance sheet to explore other avenues of growth.”