Light & Wonder Hit Record Breaking Revenues For 2023

Light & Wonder experienced a ground breaking year in 2023 with record-breaking revenue of $2.90 billion. The growth can be attributed to a series of strategic investments and acquisitions, including the acquisition of SciPlay and the divestment of non-core businesses such as the lottery division and the OpenBet sports betting platform.

Light & Wonder’s revenue surge in 2023 can be largely attributed to its strategic investments throughout the year. The highlight was the acquisition of the remaining shares in SciPlay, the social gaming division that was spun off in 2019. This acquisition, valued at over $420 million, allowed SciPlay to become a fully integrated part of the Light & Wonder portfolio. Matthew Wilson, the President and CEO of Light & Wonder, expressed his satisfaction with the integration process, stating that SciPlay has exceeded expectations and delivered outstanding results.

Wilson emphasized that SciPlay’s success stems from a combination of factors, including a best-in-class team and a focused strategy. He noted that SciPlay has become the fastest-growing social casino company in the industry, gaining significant market share. Wilson attributed this success to a harmonized development process across all businesses and a cross-platform strategy that leverages the strengths of each segment.

Light & Wonder’s decision to divest its lottery business and the OpenBet sports betting platform allowed the company to streamline its focus on its core areas of expertise. In 2022, Light & Wonder completed the sale of its lottery business to private equity company Brookfield Business Partners for a staggering $5.80 billion. This divestment enabled Light & Wonder to concentrate on its gaming, SciPlay, and iGaming segments.

Additionally, Light & Wonder sold its OpenBet sports betting platform to Endeavor, further reinforcing its strategic shift. By divesting non-core businesses, Light & Wonder could allocate resources more effectively and concentrate on areas with higher growth potential. This strategic realignment has proven to be a pivotal move for the company.

Light & Wonder’s revenue growth in 2023 was not limited to a single segment but spread across all three core verticals: gaming, SciPlay, and iGaming. The gaming segment, in particular, witnessed a remarkable increase in revenue, reaching $1.85 billion, a 15.6% rise compared to the previous year. This growth can be attributed to increased gaming machine sales and higher gaming operations revenue, driven by an expanded North American installed base.

The newly integrated SciPlay business also experienced significant revenue growth, generating $777 million in 2023, a 15.8% increase year-on-year. This growth was fueled by the core social casino business and increased player engagement. Light & Wonder’s iGaming segment also contributed to the company’s success, with revenue reaching $275 million, a 14.6% increase compared to the previous year. This growth was driven by strong performance in both the US and international markets.

Light & Wonder’s financial performance in 2023 showcased its commitment to long-term sustainable growth. Services revenue surged by 10.9% to $1.99 billion, while products revenue increased by an impressive 27.1% to $991 million. These figures demonstrate the company’s ability to deliver value across its various business lines.

Operating expenses witnessed a modest increase of 6.5% to $2.38 billion, primarily driven by selling, general, and administrative costs. Despite this increase, Light & Wonder achieved a pre-tax profit of $205 million, a significant improvement compared to the previous year’s loss. Adjusted EBITDA also experienced substantial growth, reaching $1.12 billion, a remarkable increase of 22.5% year-on-year.

Light & Wonder concluded 2023 on a high note, with the fourth quarter alone generating $770 million in revenue, a 12.9% increase compared to the same period in the previous year. Gaming revenue led the way, reaching $496 million, a 13.2% rise year-on-year. SciPlay revenue increased by 12.1% to $204 million, while iGaming revenue grew by 12.9% to $70 million.

Looking ahead, Light & Wonder’s future prospects appear promising. The company’s strategic investments, divestments, and focus on core businesses have positioned it for continued growth. Wilson expressed confidence in Light & Wonder’s ability to capitalize on significant growth opportunities and deliver exceptional results. With a winning mentality, experienced talent, and a differentiated product strategy, Light & Wonder is well-equipped to maintain its growth trajectory.