Light & Wonder reports 14th consecutive quarter of revenue growth
Despite share price dip, growth in gaming, igaming and SciPlay businesses propel Q3 revenue to $817m
Light & Wonder has reported its 14th consecutive quarter of year-over-year (YOY) revenue growth as management noted a “strong performance” across all three business segments.
Revenue for the three months ending September 30 stood at $817m, up 12% YOY, which CEO Matt Wilson said reflected the “relentless collective efforts of the talent across the organization.”
Despite revenue increasing in yet another quarter, Light & Wonder’s shares are down 5.6% in trading post-market close.
Consolidated adjusted EBITDA rose 12% to $319m, with revenue growth and “sustained margin strength” cited as core reasons.
Net income for Q3 was $64m, down from $80m the previous year, which Light & Wonder attributed to higher restructuring and other costs related to legal matters.
In September, the supplier lost a preliminary court case against Aristocrat Technologies after it was accused of misappropriating trade secrets to create the Dragon Train slot game, which had similarities to Aristocrat’s Dragon Link series.
Breaking revenue down by segment, gaming revenue for the quarter grew 15% YOY to $537m, primarily due to further growth in gaming machine sales.
Adjusted EBITDA for the division jumped 14% YOY to $267m, up from $235m in Q3 2023.
Revenue from igaming rose 6% YOY to $74m driven by content launches and increased momentum in North America and Europe, while adjusted EBITDA dropped 4% to $24m.
SciPlay revenue for the quarter stood at $206m, rising 5% YOY, with adjusted EBITDA growing 8% to $66m.
Light & Wonder added that growth was driven by the social casino business which saw high player engagement and monetization.
SciPlay’s average monthly paying users remained flat at 600,000, with average monthly revenue per paying user coming in at $113.49.
On the supplier’s Q3 results, Wilson said: “Our results once again reflect the relentless collective efforts of the talent across our organization underpinned by our robust and scalable R&D platform.
“We will continue to execute on our cross-platform strategy focused on innovative content and products as a leading global end-to-end gaming technology solutions provider.
“Our team is committed and engaged as we stay on course through the execution chapter of our journey to reach our target.”
Oliver Chow, Light & Wonder CFO, added: “The highly cash generative nature of our business, combined with a healthy balance sheet and strategic capital allocation program, has proven to be a strong framework to create shareholder value.
“We plan to further accelerate this value creation flywheel through continued R&D and capex investments, as well as through financial means such as our share repurchase program.”