Key points:
- Q3 2024 revenue grew 12% year-on-year to $817m, with gains across all business segments
- Gaming revenue rose 15% to $537m, fueled by a 38% increase in gaming machine sales
- SciPlay revenue increased by 5% to $206m, driven by strong performance in social casino gaming
Light & Wonder reported $817m in revenue for the third quarter of 2024, a 12% increase over Q3 2023.
This growth reflects robust gains in all segments, including gaming, SciPlay and iGaming. Gaming revenue reached $537m, up 15%, mainly driven by a 38% surge in gaming machine sales and continued strong performance in North American operations.
SciPlay, the company’s social gaming division, posted a 5% revenue increase to $206m. This growth was largely fueled by high player engagement and monetisation in social casino gaming.
Meanwhile, its iGaming division grew 6% to $74m, supported by momentum in North American markets and recent game launches. Adjusted EBITDA rose to $319m, a 12% increase, underlining the company’s steady earnings growth trajectory.
Capital return and debt management
During Q3, Light & Wonder repurchased approximately 400,000 shares, returning $44m to shareholders. This action is part of an ongoing capital return initiative, aligning with a $1bn share repurchase program announced earlier in the year.
The company's debt leverage ratio improved to 2.9x, down from 3.1x at the end of 2023 and remains within the target range of 2.5x to 3.5x.
Light & Wonder’s balance sheet also reflects strong liquidity, with $347m in cash and cash equivalents as of 30 September 2024.
CFO Oliver Chow commented: “We stay highly convicted to our strategy and roadmap as we reaffirm our 2025 $1.4bn consolidated AEBITDA target and look to remain a compounder of growth for years to come.”
Legal developments and product adjustments
A significant event during Q3 involved legal action regarding Light & Wonder’s Dragon Train-themed games. In September, a US District Court granted competitor Aristocrat a preliminary injunction halting sales and distribution of Dragon Train products in North America.
In response, Light & Wonder swiftly initiated measures to limit disruption by leveraging its extensive portfolio to replace affected units.
Approximately 95% of Dragon Train units were successfully replaced with alternative games from the company’s catalogue by quarter’s end.
While Dragon Train was expected to contribute less than 5% to Light & Wonder's projected $1.4bn 2025 EBITDA, the company stated that mitigating actions would preserve its long-term growth objectives.
Segment highlights: Gaming, SciPlay and iGaming
- Gaming: Gaming segment revenue increased 15%, reaching $537m. This growth was supported by a 38% rise in global gaming machine sales and a 5% increase in revenue from gaming operations. The company’s North American premium installed base grew 7% to 33,151 units, while new cabinet models, including Cosmic and Kascada, continued to drive customer engagement.
- SciPlay: SciPlay recorded a 5% revenue increase, reaching $206m. This growth was led by strong payer engagement in the social casino sector, along with a 12% contribution from direct-to-consumer platforms. SciPlay reported that active payer metrics and average revenue per paying user remained strong.
- iGaming: iGaming revenue rose 6% to $74m, with North American demand and a steady launch of new content supporting growth. The segment saw $22.8bn in wagers processed during Q3. The revenue increase excludes $3m in licence termination fees from the prior year, which had temporarily boosted revenues.
Relevant context and recent progress
Earlier in 2024, Light & Wonder reported similar growth in Q2, with a 12% increase in revenue and strong performance across its core segments. Gaming machine sales drove the Q2 results, along with an expansion of the North American installed base and successful SciPlay initiatives. The quarter also marked a partnership with the Oregon Lottery to deploy Kascada dual-screen gaming terminals.
Good to know: Looking forward, Light & Wonder aims to build on its R&D investments and product innovation. At recent gaming expos, such as G2E in Las Vegas, Light & Wonder showcased an expanded product portfolio, demonstrating its cross-platform capabilities.
CEO Matt Wilson stated: "We will continue to execute on our cross-platform strategy focused on innovative content and products as a leading global end-to-end gaming technology solutions provider. Our team is committed and engaged as we stay on course through the execution chapter of our journey to reach our target."
With stable financials and strategic product diversification, Light & Wonder continues its path toward achieving its 2025 targets, seeking to maintain its position as a global gaming technology provider.
