Gaming equipment and services group Light & Wonder has announced that it achieved 15 consecutive quarters of consolidated yearly revenue growth, with 4Q24 revenue up by 4 percent yearly to $797 million.
According to the group’s latest financials published on Wednesday morning, the group also saw four consecutive quarters of double-digit adjusted profit (NPATA), up by 24 percent yearly to $127 million.
Consolidated AEBITDA for the period also increased by 4 percent yearly, to $315 million.
During the period, gaming revenue increased by 4 percent yearly, to $515 million, which the group says was primarily led by continued growth in Gaming Systems ($88 million) and Table products ($57 million) – growing by 24 percent and 10 percent yearly, respectively.
The group’s gaming operations revenue increased by 4.1 percent yearly, to $175 million, while gaming machine sales revenue fell by 4.87 percent, to $195 million. This comes despite a 25 percent increase in North America shipments year-on-year, ‘driven by replacement units with support from new casino openings and expansions’.
Global unit shipments were down by 21 percent yearly, to 9,589, with a 51 percent drop in international unit shipments – totaling just 3,609.
The group’s SciPlay segment revenue was flat during the period, at $204 million. Revenue from third-party platforms was down by 10 percent yearly, to $177 million, while its direct-to-consumer platforms revenue increased by nearly 286 percent yearly, to $27 million.
Regarding the iGaming segment, revenue was up by 11 percent yearly, to $78 million – a quarterly record, ‘primarily driven by strong performance in North American and European markets, compelling product launches, along with overarching industry growth’. Gross gaming revenue from the group’s Lightning Box product increased by 35 percent yearly in 4Q24. The wagers processed through its OPENGAMING System (OGS) totaled $24 billion, up by 11 percent yearly.
FY24 and expectations for FY25
Overall revenue grew by 10 percent yearly for the group in 2024, nearing $3.2 billion, pushing a 24 percent boost in profit (NPATA) – to $480 million. Consolidated AEBITDA was up by 11 percent yearly, to $1.24 billion.
Gaming revenue increased by 4 percent yearly, to nearly $2.07 billion, with all subsegments recording yearly growth except for table products. Gaming operations revenue increased by 4 percent to $690 million, gaming machine sales revenue by 22 percent, to $895 million, gaming systems revenue was up 13 percent to $302 million. Table products revenue was down 1 percent yearly, to $211 million.
Global unit shipments during the year were up by 16 percent year-on-year, to 43,658. North American unit shipments rose by 21 percent, to 22,320, while international shipments were up 12 percent, to 21,338.
Speaking of the results, Matt Wilson – President and CEO of L&W said “We ended a strong 2024 with continued double-digit revenue and earnings growth for the year. This year, the Gaming machine sales share gains in North America and Australiaare a testament to our R&D investment, commercial strategy and robust product roadmap”.
The executive also commented on the recently announced acquisition of Grover Gaming’s charitable business, noting it “enhances our cross-platform strategy and presence in regulated land-based markets, giving us a broader distribution base for our vast content library and accelerating our drive for sustainable future growth”.
The acquisition involves an upfront amount of $850 million cash and a revenue-based earn-out of up to $200 million cash over a four-year period. The transaction is expected to close during the second quarter of 2025.
The group also announced that it had entered into an agreement to pay $72.5 million in February of 2025 to resolve antitrust claims related to its automatic card shuffler business. The antitrust claims are based on alleged conduct beginning in 2009. ‘While the settlement resolves the disputed claims, the Company has not admitted any liability in this matter,’ the company indicates.
Regarding the first quarter of 2025, the group notes that ‘Based on the timing dynamics of Game Sales and high-return investment opportunities, both of which are expected to drive enhanced organic growth as the year progresses, we expect first quarter 2025 year-over-year Consolidated AEBITDA growth to be in the low double-digits’.
ASX listing review
The group further notes that it is considering ‘both a dual primary and a sole listing on the ASX (Australian Securities Exchange)’. This comes as the company nears its second anniversary of its secondary listing on the ASX, which now represents about 30 percent of total ownership.
The company has engaged advisors to ‘evaluate potential strategies to achieve this objective’ and notes it will seek feedback from key stakeholders’.
Speaking of the possible move, L&W’s Chair of the Board of Directors, Jamie Odell noted “The ASX is a premier exchange with a strong history of supporting global gaming companies, offering access to a deep and liquid market of sophisticated investors and industry participants with a comprehensive understanding of the gaming sector. We look forward to engaging with the market and our existing shareholders to further elevate the profile of our ASX listing”.
