Revenue Growth Across All Segments
Light & Wonder has delivered another stellar quarter, marking its ninth consecutive period of double-digit revenue growth. The gaming technology giant reported a 12% year-over-year increase in consolidated revenue, reaching $817 million in Q3 2024.
Gaming Division Leads Performance
The company’s gaming segment emerged as the primary growth driver, with revenue surging 15% to $537 million. This impressive performance was largely attributed to a 38% increase in gaming machine sales and robust North American operations. The success of new cabinet models, including Cosmic and Kascada, has helped expand the North American premium installed base by 7% to 33,151 units.
Digital Gaming Continues to Thrive
In the digital realm, Light & Wonder’s SciPlay division continued its upward trajectory, posting a 5% revenue increase to $206 million. The growth was fueled by strong player engagement in social casino gaming and successful direct-to-consumer initiatives. Similarly, the iGaming segment grew 6% to $74 million, processing $22.8 billion in wagers during the quarter.
Strong Financial Management and Challenges
The company demonstrated strong financial management during Q3, repurchasing approximately 400,000 shares and returning $44 million to shareholders. Its debt leverage ratio improved to 2.9x, down from 3.1x at the end of 2023, while maintaining a healthy liquidity position with $347 million in cash and equivalents.
A notable challenge during the quarter involved legal action regarding Light & Wonder’s Dragon Train-themed games. Following a preliminary injunction from a US District Court, the company swiftly replaced approximately 95% of affected units with alternative games from its extensive portfolio. The company maintains that this situation will have minimal impact on its projected 2025 EBITDA target of $1.4 billion.
Leadership Outlook
CFO Oliver Chow expressed confidence in the company’s strategic direction: “We stay highly convicted to our strategy and roadmap as we reaffirm our 2025 $1.4bn consolidated AEBITDA target and look to remain a compounder of growth for years to come.”
CEO Matt Wilson reinforced this sentiment, emphasizing the company’s commitment to innovation and cross-platform strategy. As Light & Wonder continues its evolution as a leading global gaming technology solutions provider, its focus remains on developing innovative content and products while maintaining strong financial performance across all business segments.
