Light & Wonder Hits Twelve Consecutive Quarters Of Revenue Growth

L&W’s consolidated revenue for the first quarter of 2024 reached an impressive $756 million, representing a remarkable 13% increase compared to the same period in the prior year. This impressive performance marked the 12th consecutive quarter of year-over-year revenue growth, underscoring the company’s ability to capitalize on emerging opportunities and strengthen its market position.

The revenue growth was fuelled by robust performance across all of L&W’s business segments. The Gaming segment saw a 14% increase in revenue, primarily driven by a 30% surge in global Gaming machine sales. The SciPlay segment reached a new quarterly revenue record of $206 million, an 11% year-over-year increase, while the iGaming segment also achieved a new quarterly revenue record of $74 million, growing 14% compared to the prior year period.

Alongside the impressive revenue growth, L&W maintained its strong profitability, with Consolidated AEBITDA (a non-GAAP financial measure) reaching $281 million, a 13% increase from the prior year period. This consistent margin expansion is a testament to the company’s operational efficiency and its ability to effectively manage costs while driving top-line growth.

L&W’s first quarter results reflect the company’s unwavering commitment to its strategic roadmap, which is centered on expanding its global footprint, enhancing its product portfolio, and leveraging its cross-platform capabilities to deliver unparalleled experiences to its customers.

The Gaming segment’s performance was bolstered by the continued success of L&W’s premium content and innovative hardware offerings. The company’s North American premium installed base grew for the 15th consecutive quarter, representing 49% of the total installed base. The recent debut of the _DRAGON TRAIN_® cabinet in the U.S. market, coupled with the persistent popularity of the COSMIC™ and _MURAL_® cabinets, have contributed to the segment’s strong growth.

The SciPlay and iGaming segments have been instrumental in L&W’s digital transformation strategy. SciPlay’s core social casino business continued to outpace the market and gain market share, driven by enhanced player engagement and monetization. The iGaming segment also maintained its momentum, with wagers processed through the Open Gaming System reaching a new quarterly record of $22.4 billion.

The company has implemented proactive measures to address the impact of inflationary pressures, including strategic cost management initiatives and the optimization of its supply chain. These efforts have enabled L&W to maintain its competitive edge and preserve its margins, even in the face of broader economic headwinds.

L&W’s diversified business model, with its balanced portfolio of Gaming, SciPlay, and iGaming segments, has been a key differentiator in navigating the current macroeconomic landscape. The complementary nature of these revenue streams has provided the company with the flexibility to adapt and capitalize on growth opportunities across various market conditions.

As L&W looks ahead, the company remains focused on executing its strategic roadmap and driving sustainable growth across its business segments.

L&W’s robust R&D pipeline and its commitment to developing innovative products and content will be crucial in maintaining its competitive edge. The company plans to further enhance its product offerings, with key hardware and content launches in both its land-based and digital markets, to cater to the evolving preferences of its diverse customer base.

L&W’s cross-platform strategy, which leverages the synergies between its Gaming, SciPlay, and iGaming segments, will be a key driver of future growth. The company will continue to explore opportunities to leverage its comprehensive portfolio and deliver seamless, omnichannel experiences to its players.

Key Takeaways