Light & Wonder posts 13th consecutive quarter of revenue growth
Date: 2024-08-09 Author: Robert Beloved Categories: PAYMENT SOLUTIONS
Light & Wonder has reported its 13th consecutive quarter of year-on-year revenue growth, reaching a total of $818m (£644.1m / €747.8m) in the three months to June 30. It’s now eight consecutive quarters of double-digit growth.
Gaming leads
Gaming was the main driver of revenue growth in Q2, bringing in $539m, up 14.4% from $471m in the same period last year. Chief executive Matt Wilson highlighted the gaming business’s success in North America, where the installed base grew 7% to 32,566 units, with average daily revenue per unit reaching $50.41.
Adjusted EBITDA for the Gaming business was $272 million, up 16.7% from $233 million in Q2 2023. Wilson noted that the result reflects the strength of the company’s portfolio and the ability to replicate franchise successes across markets and business models.
Gaming and SciPlay Segments Gain
The company also saw revenue growth in its Gaming business of 5.7% and its SciPlay social gaming segment of 7.9%. Gaming revenue was $74 million, driven by continued growth in North America, while SciPlay generated $205 million, driven by the company’s full acquisition last October.
Light & Wonder’s operating activities also contributed significantly to the growth. Net operating cash flow was $141 million in the second quarter, up significantly from $34 million in the same period last year. This growth is due to reduced expenses related to the divestitures of OpenBet and Scientific Games.
The company's consolidated adjusted EBITDA reached $330 million in the second quarter, up 17.4% year-on-year. Net income increased to $82 million from $5 million last year, driven by revenue growth and strong margins.
Light & Wonder's Outlook After a Strong First Half
While revenue growth in the second quarter fell short of the first quarter's 12.8%, Light & Wonder finished the first half of the year with record numbers. Consolidated revenue for the first six months was $1.6 billion, up 14.3% from $1.4 billion in the same period last year.
Slot sales reached $433 million, up 30.8% year-over-year, offsetting a decline in table game sales to $101 million.
Share Repurchase Program
In June, the company announced a new three-year share repurchase program worth up to $1 billion, underscoring its confidence in the company’s future prospects. Chief Financial Officer Oliver Chow noted that the company continues to create significant shareholder value through improved cash flow.
Strategic Goals to 2025
In May 2022, Light & Wonder set a goal of achieving consolidated adjusted EBITDA of $1.4 billion by 2025. Despite the slowdown in online gaming legalization in the U.S., Wilson expressed confidence in achieving this goal, pointing to current EBITDA growth.
New Markets on the Horizon
Wilson noted that Asian markets, particularly the United Arab Emirates, are of interest to the company. With online gaming regulation and the development of integrated resorts, the region could become a significant market for Light & Wonder in the coming years.
