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Light & Wonder, Inc. Reports Second Quarter 2024 Results

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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.

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Caesars Sportsbook Accepts its First Sports Wagers in Oregon Through a Partnership with the Coquille Indian Tribe

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Caesars Entertainment Inc. accepted sports wagers in Oregon for the first time, made possible through a partnership with the Coquille Indian Tribe in Coos Bay. The ceremonial first bet was placed on Caesars Sportsbook self-service wagering kiosks inside the Coquille Indian Tribe’s premier gaming and hospitality destination, Ko-Kwel Casino Resort | Coos Bay, previously known as The Mill Casino, which now celebrates its 30th anniversary.

Caesars has enhanced Coquille’s sports viewing experience at its premier destination with a large fleet of Caesars Sportsbook self-service betting kiosks, conveniently located on the casino floor. These kiosks feature a best-in-class wagering menu with a wide array of same game parlays, player props, futures and live in-play markets. Sports fans 21 and older can enjoy the gold standard of sports wagering, including unmatched full college sports offerings which are not otherwise available on a statewide mobile basis in Oregon, reflecting Caesars’ and the Coquille Indian Tribe’s shared commitment to providing world-class experiences.

“We remain committed to supporting Indian gaming, and we’re proud to partner with the Coquille Indian Tribe to enhance their guest experience. Bringing our sports wagering offering to a new jurisdiction for the first time is always significant, and we know offering our expansive menu of sports wagering markets will undoubtedly enhance the exceptional experience that the Coquille Indian Tribe provides to its guests,” said Eric Hession, President of Caesars Digital.

“We are proud to have this iconic gaming brand join us, as both brands have represented excellence in the industry for decades. This partnership aligns perfectly with our commitment to advancing gaming opportunities and enhancing guest satisfaction. We are excited to collaborate with such a distinguished brand and look forward to creating even more memorable sports wagering experiences for our guests,” said Margaret Simpson, CEO of the Coquille Economic Development Corporation.

Oregon’s newest in-person sports wagering destination at Ko-Kwel Casino Resort | Coos Bay provides a responsible environment for guests to wager on their favourite sporting events, supported by the longstanding commitment to Responsible Gaming that both Caesars and the Coquille Indian Tribe have upheld for decades.

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Light & Wonder Completes Acquisition of Grover Gaming’s Charitable Gaming Assets

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Light & Wonder Inc. announced it has completed its previously disclosed acquisition of Grover Gaming’s charitable gaming assets for total consideration of $850 million cash, subject to customary purchase price adjustments, and a four-year revenue-based earn-out of up to $200 million cash.

“Grover Gaming has established itself as a leader in the fast-growing charitable gaming space. Bringing their assets and expertise into our ecosystem aligns perfectly with our strategy to expand into complementary regulated markets. This addition enhances our position as the leading global cross-platform games company and opens new opportunities to deliver our world-class content to even more players. We’re excited to welcome the Grover team to Light & Wonder,” said Matt Wilson, President and CEO of Light & Wonder.

“Joining Light & Wonder marks an exciting new chapter for the charitable gaming business. We’re proud of what we’ve built in the charitable gaming space, and we see tremendous opportunity to grow even further as part of Light & Wonder. Our teams share a passion for innovation and a commitment to serving customers and communities, and we’re excited to take that to the next level together,” said Brian Brown, CEO of Grover Gaming (Light & Wonder’s new division).

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Pavilion Payments Names Alyssa Beaver Senior Vice President of Sales

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Pavilion Payments Names Alyssa Beaver Senior Vice President of Sales

 

Pavilion Payments, the leader in omnichannel payment solutions for the gaming industry, has announced the appointment of Alyssa Beaver as Senior Vice President of Sales. In this role, Alyssa will lead Pavilion Payments’ brick-and-mortar sales organisation, working closely with the leadership team to drive growth and foster long-term relationships with new and existing customers. She will also be key in enhancing the company’s market footprint by cultivating strong, collaborative partnerships across product, operations, and service teams.

“We are thrilled to welcome Alyssa to the Pavilion Payments team. Alyssa has a proven track record in sales leadership, and her deep understanding of both the gaming and fintech industries will be invaluable as we continue our growth. Her customer-centric approach, strategic mindset, and collaborative leadership style will help us continue to innovate and deliver outstanding solutions to our customers,” said Dan Connors, CEO of Pavilion Payments.

“I’m excited to join Pavilion Payments at such a pivotal time of innovation and growth. I look forward to working with our incredible team to help our partners grow, enhance the player experience, and deliver meaningful value to the industry,” said Alyssa Beaver, Senior Vice President of Sales at Pavilion Payments.

Alyssa’s extensive experience in sales and marketing comes from her recent leadership role at Passport Technology, where she led the sales and marketing teams and was instrumental in driving significant revenue and organizational growth. During this time, she played a critical role in landing several major enterprise accounts and expanding the company’s market presence.

Before her work at Passport, Alyssa held senior sales positions at Apriva and gained experience at Paycom, where she built a strong foundation in fintech and SaaS solutions across diverse sectors such as education, healthcare, and military.

Her ability to build relationships, close large deals, and scale sales teams has set her apart as a sales leader. Alyssa is passionate about fostering partnerships and collaborating across teams to create customer-first solutions that drive business success. She is a graduate of Arizona State University.

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