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Light & Wonder, Inc. Reports Second Quarter 2024 Results
Light & Wonder, Inc. reported results for the second quarter ended June 30, 2024.
We maintained strong momentum in the second quarter, delivering an 8th consecutive quarter of double-digit consolidated revenue growth year-over-year, and continued execution on our diverse content roadmap and cross-platform strategy. Consolidated revenue grew 12%, driven by continued strong performance across all our businesses, resulting in robust earnings growth:
- Gaming revenue increased to $539 million, up 14% compared to the prior year period, primarily driven by global Gaming machine sales growth, which increased 32%, coupled with record Gaming operations unit expansion in the North American installed base and growth across Gaming systems, resulting in AEBITDA growth and margin expansion of 17% and 100 basis points, respectively.
- SciPlay revenue grew to $205 million, an 8% increase from the prior year period, driven by the social casino business, which continues to outpace the market and gain share on strong payer metrics, while growing our direct-to-consumer platform and expanding AEBITDA margin by 300 basis points.
- iGaming revenue grew to $74 million, a 6% increase from the prior year period, primarily reflecting continued momentum in North America, while the prior year benefited from $2 million in license termination fees.
First half 2024 consolidated revenue increased 13% to $1.6 billion as we continued advancement towards our long-term financial targets and returned $175 million to our shareholders through share repurchases.
Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “Light & Wonder continues to capitalize on opportunities underpinned by our scale and diversified product offerings as demonstrated through the growth momentum across the business. We saw strong progress in the Gaming business as the expansion of units in the North American installed base reached an inflection point. Our global presence enables further product refinement and market penetration with our suite of games and casino solutions. We continue to develop our catalog of proven, evergreen franchises to bring the most engaging experiences to our players, leveraging the power of our portfolio across land-based, social and iGaming platforms. The uplift that we have continued to see across the business is a testament to the quality of the talent and culture in our organization. I am pleased with the continued momentum that we are seeing and know that the best is yet to come.”
Oliver Chow, Chief Financial Officer of Light & Wonder, added, “Our 13th consecutive quarter of consolidated revenue growth once again reflects the strength of our combined business and solid financial profile. We continue to see improved earnings quality with consistent growth and healthy margins, all while investing back into the business to scale for the future. The new $1.0 billion share repurchase program is a testament to the value we see in the business and confidence in our ability to execute to plan over the long-term. We believe we will continue to create significant value for our shareholders through enhanced cash flow generation initiatives while delivering on our financial targets.”
LEVERAGE AND CAPITAL RETURN UPDATE
- Principal face value of debt outstanding(1) was $3.9 billion, translating to a net debt leverage ratio(2) of 3.0x as of June 30, 2024. Our net debt leverage ratio(2) decreased by 0.1x from December 31, 2023, and remained within our targeted net debt leverage ratio(2) range of 2.5x to 3.5x.
- Returned $175 million of capital to shareholders through the repurchase of approximately 1.8 million shares of L&W common stock during the first half of 2024 and completed the full $750 million share repurchase authorization. Under the initial share repurchase program, we purchased 11.2 million common shares, or 11.6% of shares outstanding at the inception of the program on March 1, 2022. The average purchase price of $66.72 per share represents a 34% discount to yesterday’s closing price of $100.71. In June 2024, the Board of Directors approved a new three-year share repurchase program(3) of up to $1.0 billion of the Company’s outstanding common stock through June 12, 2027.
- Repriced our Term Loan B again in July 2024, reducing our interest rate by 50 basis points resulting in a decrease in annualized interest costs of approximately $11 million, or $19 million in annualized interest costs reduction including our January repricing.
(1) Principal face value of debt outstanding represents outstanding principal value of debt balances that conform to the presentation found in Note 10 to the Condensed Consolidated Financial Statements in our March 31, 2024 Form 10-Q.
(2) Additional information on non-GAAP financial measures presented herein is available at the end of this release.
(3) The program may be conducted via open market repurchases, privately negotiated transactions, including block trades, accelerated share repurchases, issuer tender
offers or other derivative contracts or instruments, “10b5-1” plans, or other financial arrangements, and may be suspended or discontinued at any time.
Pollard Banknote Limited has announced a two-year extension of its Scratch Ticket Printing contract with the Idaho Lottery. This renewal, effective until March 2027, ensures that Pollard Banknote remains the Lottery’s primary partner, supplying at least 71% of its Scratch tickets annually. Additionally, Pollard Banknote will continue to provide related services, including game design, marketing, and strategic planning.
Pollard Banknote first partnered with the Idaho Lottery in 2013, offering innovative products and strategic recommendations to enhance its Scratch ticket product category. This successful collaboration culminated in a new primary partnership that came into effect in 2021. Since then, the Idaho Lottery’s Scratch ticket sales have soared by 33.1%—the second highest growth among all U.S. lotteries. This growth led to the Lottery delivering record-breaking dividends to the people of Idaho, benefiting public schools and state facilities.
“We are excited to extend our partnership with the Idaho Lottery, which is built on our shared vision of innovation and player engagement. Together, we will continue to develop exciting games and marketing strategies that resonate with Idahoans, ultimately supporting the valuable initiatives funded by lottery proceeds throughout the state,” said Byron Peterson, Senior Director of Sales & Marketing at Pollard Banknote.
“The Idaho Lottery has seen significant success through its collaboration with Pollard Banknote. Extending our contract with Pollard Banknote means we will remain ahead of market trends and continue to deliver exciting products to our players. We look forward to continuing to work together to create memorable lottery experiences that also benefit the Idaho community,” said Andrew Arulanandam, Director of Idaho Lottery.
International Game Technology PLC (IGT) has announced that it will showcase a compelling portfolio of games and solutions designed to drive tribal casino growth at the Indian Gaming Tradeshow & Convention (IGA) 2025, April 2-3, in San Diego, Calif.
“IGT’s products and solutions portfolio for IGA 2025 will reflect our commitment to delivering future-forward gaming innovations that can provide growth opportunities for our valued tribal customers. Building on the success of our high-performing content and hardware, we will feature the world premiere of the RISE55 cabinet, the latest Magic Treasures, Tiger and Dragon and Prosperity Link games, plus new Class II and core video content. Our IGA display will also highlight our exciting expansion of Wheel of Fortune content to multiple product categories,” said Nick Khin, IGT President, Global Gaming.
IGT will kick off IGA 2025 with a special RISE55 cabinet unveiling event with Indian Gaming Association Chairman Ernie Stevens Jr. on April 2. Under the theme “IGT On The Rise,” IGT’s booth #1641 will feature the following performance-focused products and solutions:
Taking Hardware Performance to New Heights with the RISE55 Cabinet: designed to deliver an immersive experience while optimizing floor space with its sleek design, the RISE55 cabinet features an ultra-high-definition 55-inch screen, state-of-the-art lighting, and advanced ergonomics. Backed by a brand-new lineup of premium multi-level progressive (MLP) content, the RISE55 cabinet will house Magic Treasures Gold, the next evolution of the high-performing Magic Treasures theme.
Building Wide-Area Progressives (WAP) Excitement with Next-Generation Games: at IGA, IGT will build on the success of some of its highest-performing premium games. Next-generation WAP titles will include Tiger and Dragon Super Arrow, which builds upon the functionalities of the original chart-topping Tiger and Dragon theme, and Prosperity Link Blessings on the 11-foot tall SkyRise cabinet. IGT will also showcase the superstar power of Whitney Houston I Wanna Dance with Somebody Slots on the impressive Peak65 cabinet.
Introducing New Core Video Games for the PeakCurve49: IGT will preview a new lineup of action-packed core video games at IGA, including Grand Buddha Link and Grand Cat Link with repeating win multipliers, and Bring the Boom Pirate Bay and Bring the Boom Egypt with an exciting “Boom Wheel” bonus. Additional highlights include Black Widow Grand, featuring enhanced free games and a lock and respin bonus.
Fortifying a Compelling Class II Portfolio: IGT Class II highlights at IGA will include the new Stinkin’ Rich Tail Wins game on the RISE55 cabinet, plus Moonlight Lanterns on the PeakCurve49 cabinet. For Washington CDS, IGT will present Triple Fortune Dragon Unleashed Player’s Edition, the latest extension of the high-performing Triple Fortune Dragon theme. IGT’s latest dual-screen hardware evolution, the Sierra27 cabinet, will also make its Class II debut.
Expanding the Wheel of Fortune Slots Success: IGA attendees can experience the community-style win celebrations of Wheel of Fortune Cash Link Big Money video slots game on the massive Wheel of Fortune Trio cabinet, which recently made its tribal casino debut. IGT will also display the Wheel of Fortune Cash Link Reels Double Diamond on the DiamondRS Premium Wheel mechanical reel cabinet. IGA attendees can also enjoy the legendary Wheel of Fortune theme in its recent expansion to the video poker and electronic table game (ETG) categories.
Reimagining CMS Power and Performance with IGT ADVANTAGE X: IGT will provide demonstrations of its future-forward IGT ADVANTAGE X casino management system at IGA. Designed for on-premise and cloud-based deployments, the solution includes modern advancements such as service-bus architecture, persona driven UI experiences and actionable event data. The IGT systems team will also showcase advancements to its Resort Wallet and IGTPay cashless solution by way of enhanced account security, registration and on-machine Slot Marker technology.
Rounding out IGT’s strong IGA games portfolio will be core stepper themes, including Double Chili Mania Extremo! and Pinball Grand on the dazzling DiamondRS cabinet. In addition, guests at IGT’s booth can preview IGT’s proven video poker performers like All-Star Poker III, Super Star Poker II, and Game KingX.
Confut USA and BetExpo join forces to provide a unique experience, bringing together speakers and professionals from the global football and iGaming industries in a single event, which will take place on June 11th and 12th, at the Hilton Miami Downtown.
Over the course of two days, participants will have the opportunity to explore topics such as sports betting, market trends, technological innovations and business opportunities.
Arthur Lobo, CEO of Confut, commented on the partnership: “The partnership with BetExpo represents a strategic merger of two industries that go hand in hand: football and iGaming. This move not only expands the diversity of content at the event, but also creates an ecosystem that is conducive to generating business between companies in the betting sector, clubs, leagues and other stakeholders. In addition, it promotes fundamental discussions on regulation, technology integration and best practices in the market.”
In addition, Pedrão Bet, CEO of BetExpo, also stated how positive the union of the two events will be:
“The partnership between BetExpo and Confut represents a strategic union of great impact, combining expertise, innovation and joining two sectors that are rapidly expanding in the global market.”
For brands looking to activate their business in these two markets, Confut USA and BetExpo offer exclusive business opportunities and experiences.
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