Industry leader in casino equipment and digital gaming, Light & Wonder, Inc., has announced its financial results for the second quarter ending June 30, 2024, marking another period of strong performance and strategic achievements. The company continued its impressive momentum, achieving double-digit revenue growth for the 8th consecutive quarter, with a year-over-year increase of 12%. This growth was supported by robust performance across all business units, including a notable 14% increase in gaming revenue, reaching $539 million.
Diverse Business Achievements:
Significant revenue growth in the gaming division was primarily due to a 32% increase in global gaming machine sales and an expansion in the North American installed base. The company's gaming systems also saw growth, boosting adjusted EBITDA by 17% and expanding profit margins by 100 basis points. Meanwhile, the SciPlay division reported an 8% revenue increase to $205 million, benefiting from strong performances in its social casino businesses and expansion of its direct-to-consumer platforms. The iGaming division also showed positive momentum, with revenue up 6% to $74 million.
Light & Wonder's President and CEO, Matt Wilson, expressed optimism about the company's future prospects, stating in a press release, "Light & Wonder will continue to capitalize on opportunities supported by our scale and diverse product offerings, as evidenced by the ongoing growth momentum across the business." He emphasized that strategic expansion in the North American installation base is a significant milestone.
The CFO, Oliver Chow, also commented on the company's financial health: "Our 13 consecutive quarters of consolidated revenue growth reflect the strength and robustness of our integrated business again." He highlighted the improvement in earnings quality and continuing growth in profit margins, underscoring the company's strategic investments for future expansion.
Capital Management and Shareholder Returns:
The company has demonstrated a steadfast commitment to delivering value back to shareholders. In the first half of 2024, Light & Wonder returned $175 million to shareholders by repurchasing approximately 1.8 million common shares. Additionally, the board approved a new three-year stock repurchase program of up to $1 billion, extending until June 2027, highlighting the company’s confidence in its long-term financial goals and its ongoing strategy to enhance shareholder value through significant cash flow generation.
As Light & Wonder continues to evolve, the company remains focused on refining its products and leveraging its comprehensive portfolio of gaming and casino solutions to further penetrate the global market. Recent repricing of Term Loan B significantly reduces annual interest costs, allowing the company to maintain financial flexibility and invest in growth initiatives.
