Light & Wonder, Inc., reported net loss of $150 million for the quarter ended on June 30, which is three folds as compared to the $51 million loss reported by the company during the same quarter in 2021.
“Net loss from continuing operations was $150 million compared to a net loss of $51 million in the prior year period. Net loss increased primarily as a result of $147 million in loss on financing transactions associated with the April 2022 debt pay down and refinancing transactions,” the company press release read.
However, Connie James, Chief Financial Officer of Light & Wonder, added, “The pace and scale of the business and financial transformation over the past year has been incredible. This quarter was no exception as our teams successfully closed on the Lottery business sale and refinancing transactions. Collectively, these transactions have transformed our balance sheet.”
Consolidated net revenue of the company on year-on-year basis grew 5 percent at $610 million from $581 million
The services segment revenues contributed 73 percent at $445 million rising just by $1 million on year-on-year basis, whereas the product sales segment grew 20 percent contributing 27 percent to the revenue pie at $165 million from $137 million.
In terms of net revenue flow from continuing operations business segments, Gaming segment revenues shot up 6 percent at $390 million from $367 million and constituted 64 percent of the net revenue pie.
Whereas SciPlay segment grew 4 percent on year-on-year basis at $160 million from $154 million and contributed 26 percent to the net revenue pie.
iGaming segment remained flat on YoY basis at $60 million and contributed 10 percent to the net revenue pie.
Expenses and Loss Per Share
Operating expenditure of the company for the June 22 quarter inflated 10 percent at $564 million from $513 million.
Significant rise in product sales expenditure, research & development expenditure and restructuring cost inflated the operating expenses on year-on-year basis.
Loss per share on year-on-year basis grew almost three folds at $1.65 from $0.58.
Amidst all odds in terms of numbers, sheer optimism reeled in the management statement, as Barry Cottle, President and Chief Executive Officer of Light & Wonder, said, “We made great strides in the second quarter as we continued to execute on our vision and the transformation of our Company.
We closed on the sale of our lottery business for $5.7 billion in gross cash proceeds, which we used to significantly de-lever our balance sheet as we continue to deliver on our promises. With the Lottery business sale and anticipated closing on the sale of our Sports Betting business by the end of the third quarter, we have achieved a significant milestone in the transformation of our organization.”
Cottle further emphasized saying, “We now have all the pieces in place and are singularly focused on building great games fully cross-platform. We recently hosted our inaugural investor day and detailed a roadmap for taking market share and unlocking tremendous value in a $70 billion TAM.
This quarter we made tangible progress against our strategies as we delivered strong operating momentum and top-line growth in the quarter. The success we are seeing this quarter is the result of the fundamental changes we have made throughout the business. Adding it all up, we couldn’t be more excited about the progress we are making and our path forward as the leading cross-platform global game company.”