Light & Wonder reports that its revenue for the third quarter of 2024 was $817 million, a 12% increase from the third quarter of 2023.
This growth reflects strong performance across all segments including Gaming, SciPlay, and iGaming. Gaming revenue reached $537 million, up 15%, primarily due to a 38% surge in gaming machine sales and continued strong performance in North America.
The company's social gaming division, SciPlay, saw a revenue increase of 5%, reaching $206 million. This growth was mainly driven by high player engagement and monetization in social casino games.
Meanwhile, driven by momentum in the North American market and recent game releases, the iGaming division grew by 6% to $74 million. Adjusted EBITDA rose to $319 million, an increase of 12%, highlighting the company's stable profit growth trajectory.
Capital Returns and Debt Management
In the third quarter, Light & Wonder repurchased approximately 400,000 shares, returning $44 million to shareholders. This action is part of an ongoing capital return plan, consistent with the $1 billion share repurchase plan announced earlier this year.
The company's debt leverage ratio improved from 3.1 times at the end of 2023 to 2.9 times, still within the target range of 2.5 to 3.5 times.
Light & Wonder's balance sheet also reflects strong liquidity, with cash and cash equivalents of $347 million as of September 30, 2024.
Chief Financial Officer Oliver Chow stated, "We are confident in our strategy and roadmap, we reiterate our 2025 consolidated AEBITDA target of $1.4 billion, and look forward to continuing compound growth in the coming years."
Legal Developments and Product Adjustments
A major event in the third quarter was a legal lawsuit faced by Light & Wonder's Dragon Train themed game. In September, a U.S. District Court issued a preliminary injunction to competitor Aristocrat, halting the sale and distribution of the Dragon Train product in North America.
In response, Light & Wonder quickly took measures, utilizing its extensive product portfolio to replace affected devices, minimizing disruptions.
By the end of this quarter, approximately 95% of the "Dragon Train" games had been successfully replaced by other games in the company's catalog.
Although the expected contribution of Dragon Train to Light & Wonder's projected 2025 EBITDA of $1.4 billion is less than 5%, the company stated that mitigation measures will maintain its long-term growth targets.
Segment Highlights: Gaming, SciPlay, and iGaming
- Gaming: The gaming division's revenue grew by 15% to $537 million. This growth was driven by a 38% increase in global gaming machine sales and a 5% increase in gaming operations revenue. The company's North American premium installed base grew by 7% to 33,151 units, while new cabinet models including Cosmic and Kascada continue to drive customer engagement.
- SciPlay: SciPlay's revenue grew by 5% to $206 million. This growth was mainly due to strong payer engagement in the social casino sector and a 12% contribution from direct-to-consumer platforms. SciPlay reports that active payer metrics and average revenue per paying user remain strong.
- iGaming: iGaming revenue grew by 6% to $74 million, driven by steady demand in North America and the rollout of new content. The division processed $22.8 billion in wagers during the third quarter. Revenue growth does not include the previous year's $3 million license termination fee, which had temporarily boosted revenue.
Background and Recent Developments
As early as the second quarter of 2024, Light & Wonder reported similar growth, with revenue increasing by 12% and strong performance in core sectors. Gaming machine sales drove the second quarter's performance, along with the expansion of the North American installed base and the success of the SciPlay plan. This quarter also saw collaboration with the Oregon State Lottery to deploy the Kascada dual-screen gaming terminal.
Looking ahead, Light & Wonder aims to strengthen its R&D investment and product innovation. At recent gaming expos, such as G2E in Las Vegas, Light & Wonder showcased its expanded product portfolio, demonstrating its cross-platform capabilities.
CEO Matt Wilson stated, "As a global leader in end-to-end gaming technology solutions, we will continue to execute a strategy focused on innovative content and products across platforms. Our team is fully committed to advancing towards achieving our goals."
With a stable financial position and strategic product diversification, Light & Wonder continues to move towards achieving its 2025 goals, striving to maintain its position as a global gaming technology provider.
