Gaming and digital drive L&W Q3 revenue up 20% annually
Online casino and gaming equipment provider Light & Wonder Inc (L&W) posted third-quarter revenue of $648 million, up 20.2% from a year earlier . Such growth was driven by “continued strong momentum” in the group’s gaming and iGaming segments, and “record revenues” for digital business SciPlay.
Based on the group’s continuing operations alone, Light & Wonder posted net income of US$20 million in the three months to September 30, compared to US$100 million in the period last year. ‘last year.
“Net income declined as prior year net income benefited from a tax benefit of US$181 million,” the company said in a press release Wednesday.
Nonetheless, the group has managed to cushion some of the effect on the current balance sheet through “higher revenue and operating income, as well as lower interest charges in the current period. “, he added.
The company had reported a net loss of US$150 million on continuing operations in the second quarter of this year.
In the third quarter, Light & Wonder reported net income attributable to its shareholders of US$328 million, including US$315 million from discontinued operations. The period to September 30 included a pre-tax gain of nearly US$362 million on the sale of the group’s sports betting business, OpenBet, to Endeavor Group Holdings Inc. The deal, which closed in September, involved total gross proceeds of approximately US$800 million. .
The company’s consolidated quarterly adjusted earnings before interest, tax, depreciation and amortization (EBITDA) from continuing operations rose 15.8% year-over-year to $235 million. The company said the increase was “primarily due” to growth in its games business.
Game revenue in the third quarter increased 23.6% year-on-year to $419 million. Light & Wonder said such growth “was driven by robust gaming machine sales growth of 47% coupled with continued growth momentum in gaming operations.” Quarterly gaming machine sales revenue was $140 million, while gaming operations revenue rose 6.6% year-on-year to $161 million.
Gaming segment adjusted EBITDA was $202 million, up 17.4% from the prior year period.
The company said it sold 7,259 units of gaming machines in the three months to September 30, up from 5,003 a year earlier. These shipments included 2,859 units sold in the international market, including Asia-Pacific, compared to 1,780 machines in the prior year quarter.
SciPlay’s revenue rose 16.3% year-on-year to $171 million, “reaching a quarterly revenue record,” supported by “the core social casino business,” Light & Wonder said. iGaming segment revenue increased 9.4% year-over-year to $58 million.
Wednesday’s statement quoted Matt Wilson, recently appointed Chairman and Chief Executive Officer of Light & Wonder, said, “The results for this quarter reflect the tangible progress we are making strategically, operationally and financially as we delivered strong double-digit growth and strong momentum. in all our activities.
He added: “With the sale of the sports betting business, we have quickly delivered on our promise to transform our business and streamline our organization.”
The company’s outstanding debt stood at $3.87 billion at the end of September, resulting in a net debt ratio of 3.1x, “well within the target range.” said Connie James, the company’s chief financial officer, in prepared remarks.
“With this milestone, we are now advancing our capital allocation priorities of returning capital to shareholders and investing in growth,” she added.
In October, Lumière & Merveille bought for money most of the assets of House Advantage LLC, described as “a leading provider of loyalty and marketing software and technology”. Light & Wonder said the acquisition would be enrich its outsourcing offer for land-based and online gaming operators.