Wednesday, October 5, 2022

Light Wonder Q2 revenue up 5

News Financial 10 Aug 2022

Light & Wonder Q2 revenue up 5%

By Peter Lynch

Light & Wonder has reported revenue of $610m for the second quarter of 2022, a 5% increase from the prior-year period.

Gaming operations represented the majority of total revenue, climbing 6% year-on-year to $390m. This was followed by SciPlay at $160m and iGaming at $60m, with the former growing 4% year-on-year and the latter remaining flat.

“We made great strides in the second quarter as we continued to execute on our vision and the transformation of our company,” said Light & Wonder President and CEO Barry Cottle. “We closed on the sale of our Lottery business for $5.7bn 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 organisation.

Cottle added: “This quarter we made tangible progress against our strategies as we delivered strong operating momentum and topline 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.”

Net loss from continuing operations for the period was $150m, compared to a net loss of $51m in the prior-year period. Consolidated AEBITDA from continuing operations was $212m, a 9% decline from the prior-year period.

Again, Gaming operations represented the majority of total AEBITDA at $179m, but this was a year-on-year decline of 8%. SciPlay fell 15% year-on-year to $41m, with iGaming climbing by 5% to $21m.

Light & Wonder CFO Connie James commented: “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.

“With our strong financial profile, including a high mix of recurring and digital revenues, sustainable double-digit growth, and a strong cash flow profile, we will generate significant excess capital.”

As noted by both Cottle and James, Light & Wonder is satisfied with the 5% year-on-year revenue climb. The results come after International Game Technology (IGT) posted a disappointing 2% fall in revenue for Q2 2022, while Evolution reported a 34% rise. Aristocrat Leisure Limited meanwhile, for the six months ended 31 March 2022, reported a 23% year-on-year rise in operating revenue.

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