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Light & Wonder posts 13% revenue jump in first quarter, beats EPS estimates

Published 2024-05-08, 04:58 p/m
© Reuters.
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LAS VEGAS - Light & Wonder, Inc. (NASDAQ:LNW), a leader in cross-platform games, reported a robust first quarter for 2024, with a 13% increase in revenue and earnings per share (EPS) that surpassed analyst expectations. The company announced a first-quarter EPS of $0.88, which was $0.23 higher than the analyst consensus of $0.65. Revenue for the quarter reached $756 million, exceeding the analyst forecast of $724.48 million and marking a 13% year-over-year (YoY) growth.

The company's gaming segment was a significant contributor to the revenue increase, with gaming revenue climbing to $476 million, a 14% rise compared to the same quarter last year. This growth was primarily fueled by a 30% surge in global gaming machine sales. SciPlay (NASDAQ:SCPL) and iGaming also saw record revenues, with SciPlay's revenue reaching $206 million, an 11% increase YoY, and iGaming's revenue growing by 14% to $74 million.

Matt Wilson, President and CEO of Light & Wonder, attributed the strong performance to the company's compelling global product offerings, which drove game sales growth in North American adjacent markets and international markets, particularly in Australia and Asia. "SciPlay and iGaming both reached record revenue levels yet again with consistent double-digit year-over-year growth," Wilson said. He emphasized that the quarter's performance validates the company's execution plan and expressed confidence in further growth driven by key hardware and content launches throughout the year.

Oliver Chow, CFO of Light & Wonder, highlighted the company's six consecutive quarters of double-digit revenue growth across Gaming, SciPlay, and iGaming as a testament to the power of their R&D engine. "Our financial performance highlights the strength of our team across all of our segments," Chow added.

The company's net income also saw a significant increase, reaching $82 million compared to $27 million in the prior year period. This was primarily due to higher revenue and consistently strong margins, along with lower depreciation, amortization, and restructuring costs.

While the stock movement following the earnings release was not specified, the company's financial results indicate a positive trajectory, with strong cash flow generation driving robust earnings growth as Light & Wonder continues to progress towards its long-term financial targets.

The detailed financial results and forward-looking statements were provided in the company's press release, which can be accessed through the SEC and ASX websites or the company's investor relations page.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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