Light & Wonder Continues Growth Streak with Q3 Revenue Climbing 12.8%
Light & Wonder has reported its tenth consecutive quarter of growth in Q3, with revenue rising to $731m. This marks a 12.8% increase compared to the same period last year. This growth has been attributed to record performances within its SciPlay and igaming businesses.
The success seen in Q3 is part of a larger trend, with five consecutive quarters of year-on-year, double-digit growth. Light & Wonder attributes these positive developments to place the business in a strong position for further growth moving forward.
One major development was the acquisition of the remaining shares in SciPlay, the social gaming division that was spun off in 2019. Light & Wonder acquired the 17% holding for more than $420m. Additionally, the business pushed ahead with its plans for a secondary listing on the Australian Stock Exchange (ASX), and in October, it was added to the ASX 200 Index.
Light & Wonder’s wider and longer-term plans have also been supported by significant moves, such as the sale of its lottery business to private equity company Brookfield Business Partners, as well as the completion of the sale of its OpenBet sports betting platform to Endeavor.
Matt Wilson, president and CEO of Light & Wonder, expressed satisfaction with the company’s performance, stating, “I continue to be pleased with the performance consistently delivered since we announced the company’s transformation strategies. This includes two new key milestones, which we achieved recently.”
Looking at the breakdown of growth in Q3, services revenue climbed 11.0% to $503m, while products revenue increased by 16.9% to $228m. The SciPlay division saw revenue climb 14.6% to a record $196m, driven by strong payer metrics and market outpacing in the core social casino business.
The igaming division also posted record growth, with revenue climbing 20.7% to an all-time-high of $70m. The US igaming revenue was particularly strong, increasing by 25.0% and aided by new content launches and platform scaling.
Despite these record performances in other divisions, gaming remains the core business for Light & Wonder, with revenue of $465m in Q3, an 11.0% increase year-on-year. Gaming machine sales were up 23.0% and various areas within the gaming division reported revenue increases.
Operating costs were 4.5% lower at $584m, leading to pre-tax profit from continuing operations increasing by 291.7%. Adjusted EBITDA was also 21.7% higher at $286m.
For the year-to-date, revenue during the nine months to 30 September reached $2.13bn, a 16.5% increase from the previous year. Operating costs were higher, but a pre-tax profit of $139m was achieved. Adjusted EBITDA also increased by 25.8% to $815m.
Looking ahead, Wilson expressed confidence in Light & Wonder’s continued momentum and growth potential, stating, “Our conviction has never been higher that we will reach our full potential as we approach the end of 2023.”