Light & Wonder has stressed that “our conviction has never been higher that we will reach our full potential” after the company reflected on a tenth successive quarter of revenue growth.
In addition, despite recently closing a transaction to secure full wonder of SciPlay, the group has asserted that it possesses “flexibility to invest” as it looks to accelerate progress towards achieving strategic and financial goals.
Revenue through the third quarter came in at $731m, up 13 per cent from $648m year-on-year, driven by double digit growth across all three core business segments.
Gaming continues to take the lion’s share after rising 23 per cent to $465m (2022: $419m), which is aligned to strong machine sales across North America and Australia, as well as maintained momentum by its suite of table products.
The aforementioned SciPlay, up 15 per cent YoY to $196m (2022: $171m) for a record breaking performance, saw its quarter epitomised by the strength of its social casino business. This is said to have “delivered strong payer metrics and once again outpaced the market and gained share”.
“We will continue to capitalise on this momentum, as evidenced by the talent acquisition efforts we’ve recently accomplished”
Matt Wilson, President and Chief Executive Officer of Light & Wonder
Elsewhere, the company’s igaming segment swelled 21 per cent to $70m (2022: $58m), another high, driven by growth in the US (+25 per cent) and international markets.
“Our tremendous team at Light & Wonder continues to deliver exceptional results with double-digit growth across all three of our businesses for the fourth consecutive quarter,” commented Matt Wilson, President and Chief Executive Officer of Light & Wonder.
“Additionally, we also reached two significant milestones, which included closing the SciPlay transaction and inclusion into the ASX 200 index in Australia. We had successful showings at both the Australasian and Global Gaming Expos with the strength of our product portfolio on full display.
“The positive feedback we received on our wide range of cabinets and games further validates our focused investment in R&D and vision for the future of the company.
“We will continue to capitalise on this momentum, as evidenced by the talent acquisition efforts we’ve recently accomplished. Coming out of G2E, our conviction has never been higher that we will reach our full potential as we approach the end of 2023.”
Further headline figures saw net income quadruple YoY to $80m (2022: $20m), which L&W put down to higher revenue and operating income, as well as a non-cash foreign currency transaction gain.
This was partially offset by $15m loss on financing transactions associated with the issuance of 2031 unsecured notes, and redemption of 2025 unsecured notes in August of 2023.
“Our business segments’ AEBITDA are at their highest levels in 2023”
Oliver Chow, Interim Chief Financial Officer of Light & Wonder
Furthermore, adjusted EBITDA increased 22 per cent to $286m (2022: $235m), driven by double-digit growth and margin expansion across all of our businesses.
Light & Wonder also revealed $3.9bn of principal face value of debt outstanding which, translated to net debt leverage ratio of 2.8x. This falls with a target of 2.5x and 3.5x, and is said to be “the lowest level in the company’s recent history”.
For the year-to-date, revenue, net income and AEBITDA increased 16.44 per cent to £2.13bn (2022: $1.83bn), $112m from a loss of $197m one year earlier and 25.77 per cent to $815m (2022: $648m), respectively.
Oliver Chow, Interim Chief Financial Officer of Light & Wonder, added: “This quarter demonstrated our commitment to growing the business and maintaining healthy margins.
“Our business segments’ AEBITDA are at their highest levels in 2023 as we continue to stay intensely focused on executing on our strategy while driving margin enhancement initiatives.
“Our commitment to operational efficiencies coupled with strong top line growth enabled us to generate significant cash flow.
“We have a strong financial profile and capital structure, which positions us well in our current growth stage, providing us with flexibility to invest as we advance toward our strategic and financial goals.”
