Light Wonder Reports Third Quarter 2024 Financial Results
Intellectia.AI
Light & Wonder Reports Third Quarter 2024 Financial Results
Light & Wonder, Inc. (NASDAQ and ASX: LNW) has announced its financial results for the third quarter ending September 30, 2024, showcasing continued momentum with consolidated revenue growth.
Key Financial Metrics
| Financial Metric | Q3 2024 Actual | Q3 2023 Actual | Year-Over-Year Change (%) | Wall Street Consensus Estimates |
|---|---|---|---|---|
| Revenue | $817 million | $731 million | 12% | $821.21 million |
| Earnings Per Share (EPS) | $0.71 | $0.81 | -12% | $1.09 |
The company reported a 12% increase in consolidated revenue to $817 million compared to the prior year period, marking its 14th consecutive quarter of year-over-year growth. However, EPS decreased to $0.71 from $0.81 due to higher restructuring and legal costs. While falling short of Wall Street expectations, Light & Wonder's revenue performance was driven by strong results across all segments.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Year-Over-Year Change (%) |
|---|---|---|
| Gaming | $537 million | 15% |
| SciPlay | $206 million | 5% |
| iGaming | $74 million | 6% |
- The Gaming segment led with a 15% revenue increase, driven by a 38% growth in global gaming machine sales and consistent performance in North American operations.
- SciPlay reported a 5% increase due to strong payer metrics in its social casino business.
- iGaming revenue experienced a 6% rise, with significant movement in North American operations.
Key Developments and Operational Highlights
- Gaming Machine Sales: 38% growth in sales.
- S&P/ASX 100 Index Inclusion: Added on September 25, 2024.
- Shareholder Returns: $44 million returned to shareholders through repurchases.
- Dragon Train Litigation: Addressing impact with diversified game offerings; 95% of affected units replaced or converted.
- Net Debt Leverage Ratio: Improved to 2.9x within the targeted range.
Executive Commentary
Matt Wilson, President and CEO, highlighted the strength of the company's diverse gaming portfolio and the success of its scalable R&D platform. Oliver Chow, CFO, emphasized cash generation and strategic financial plans that include continued R&D, capex investments, and a focused share repurchase program, reinforcing the 2025 AEBITDA target of $1.4 billion.
Capital Management Activities
The company repurchased approximately 0.4 million shares, amounting to $44 million in capital returns. There were no announced changes in dividends or additional share repurchase programs.
Forward Guidance
Light & Wonder reaffirmed its 2025 AEBITDA target of $1.4 billion and expects AEBITDA growth to be above 10% for the full year 2024.
Stock Price Movement
Following the earnings release, Light & Wonder's stock experienced a slight decline, with an after-event price change of -0.83%.
This comprehensive earnings report underscores Light & Wonder's continued trajectory towards sustained growth and strategic milestones despite facing certain operational challenges.
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