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L&W experiences sharp increase in fourth-quarter net income

February 28, 2024 World iGaming & GamblingIndustry Updates

Light & Wonder Inc. (L&W), a manufacturer, reported a significant rise in net income attributable to shareholders in the fourth quarter. The company’s net income climbed from US$30 million to US$66 million, a 120.0 percent year-over-year gain.

However, when compared sequentially, its net income dropped by 12.0% from US$75 million in the third quarter.

The firm supplied 12,123 new gaming machine units in total at this time, a significant rise of 56.2 percent over the 7,760 units supplied the previous year. 7,340 of these exports—a notable increase of 175.8% from the previous quarter—were sold in foreign markets, particularly in Asia Pacific.

The value of gaming machine sales increased by 31.4 percent each year globally to reach US$205 million. This is a 19.2 percent gain over the US$172 million for the third quarter. Analysts Don Carducci and Michael James of JP Morgan said that an isolated transaction in the UK contributed to an improvement in foreign unit volumes. Volume, even after taking away UK sales, would have been 15% more than projected and 40% higher yearly.

President and CEO of Light & Wonder, Matt Wilson, has described 2023 as a “banner year,” with double-digit growth in all firm sectors as a result of well-thought-out strategies and strategic investments.

The fourth quarter’s sales, which were US$770 million, increased by 12.9 percent year over year and 5.3 percent sequentially from US$731 million in the third quarter. The adjusted consolidated EBITDA for the quarter came to US$302 million, or 14.0 percent year over year and 5.6 percent sequentially.

Light & Wonder’s three primary business segments are land-based gambling, iGaming, and SciPlay, a digital gaming subsidiary. Adjusted EBITDA for the land-based gaming industry was $245 million, up 14.0% year over year and 4.3 percent sequentially. SciPlay produced US$69 million in adjusted EBITDA, up 17.0% from the prior year, and US$204 million in sales, up 12.1% from the prior year. The iGaming division had a 21.1 percent rise in adjusted EBITDA over the same time in 2022, and a 12.9 percent increase in revenue to US$70 million.

The company’s net debt leverage ratio dropped to 3.1x from 3.3x in 2022, staying within the desired range of 2.5x to 3.5x. Net debt grew, rising from more than US$3.03 billion at the end of 2022 to slightly over US$3.49 billion as of December 31, 2023.

For the fiscal year 2023, Light & Wonder reported net income attributable to shareholders of $163 million, with sales increasing by 15.5% yearly to little over $2.90 billion. Over $1.12 billion was the total adjusted EBITDA for the year, up from $913 million the previous year.

Original story by: GGRAsia

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