Light & Wonder Q3 revenue soars 12.8% to 731m USD in Q3. Robust growth led by SciPlay acquisition. Plus, L&W a future in live casino coming! (Photo by Annie Spratt on Unsplash)
Recently, we’ve seen a huge turning point for Light & Wonder in the live casino. Since Scientific Games opened the LNW brand and purchased Authentic Gaming, we have seen L&W enter the live casino space to expand its online slot and land-based game machine business.
It appears that good times are ahead if the company succeeds in yet another iGaming vertical. Two significant deals include L&W and Authentic Gaming’s US live dealer debut. A partnership with BetRivers that sees the company as the county’s fifth live casino games developer. The deal is in Rhode Island state, while competitors Evolution, Ezugi, Playtech, and Stakelogic battle it in other states such as Pennsylvania, Michigan, New Jersey, Connecticut, and West Virginia. On top of this, the duo of Authenticity Gaming and L&W released the 7’s on Fire Live Gameshow, available in Europe’s largest iGaming market, the UK.
Promising Financial Statements
Light & Wonder released their Q3 2023 financial report last Friday and experienced double-digit growth for the fifth consecutive quarter, mainly due to the strategic acquisition of SciPlay at the end of October. Leading up to the 2023 Q3 report, the company has had 10 consecutive quarters of growth (5 quarters of single-digit growth), pushing the share price to a 5-year high of USD 86.87. The stock is up almost 50% since January, and investors are anticipating the company to break out to future record highs.
Net revenue across all divisions in Q3 was up 12.8% to USD 731m from the previous year. Up to September 30th, 2023, the overall revenue was USD 2.13b, 16.5% higher than last year. The newly acquired subsidiary SciPlay posted USD 196m (up 42% from the same time last year). Net income was up 300% over last year at USD 80m. Operational costs increased by 4% to USD 584m due to talent acquisitions, cost of sales, currency adjustments and tax rates. Adjusted EBITDA continued to outpace revenue and increased 22% to USD 286m, with margins in Q3 of 39% compared to 36% last year. This increase in AEBITDA can be attributed to higher revenue and operating income.
The balance sheet boosts $900m USD in cash, liquidity of 1.8b USD and favorable future loan interest rate restructuring.
Light & Wonder Q3 Revenue Stats at a Glance
| Financial Metrics | Details |
|---|---|
| Net Revenue | Increase of 12.8% to $731m USD |
| Gaming Revenue | Up marginally from $460m USD to $465m USD |
| iGaming Revenue | Increase from $66m USD to $70m USD |
| SciPlay Revenue | Up 14.65% to $196m USD |
| Net Income | $80m USD (up from $20m last year), a 300% increase |
| Operational Expenses | Increased to $584m USD from $559m USD from 2022 |
| Adjusted EBITDA | 22% increase to $286m from $235m USD last year |
| Margin | Up 3% over last year |
| Share Repurchase Plan | Bought back $112m USD in Q3 (73% of its $750m USD repurchase program) |
Light and Wonder Share Prices
The company’s shares have outperformed all other iGaming stocks we follow here on Livecasinocentral.
In our previous iGaming Stocks Update Issue 22 2023, published on 31 October 2023, the results showed Evolution (-4.29%), Entain (-32.40%), Playtech (-27.99%), and 888 Holdings (-6.46%) were all down on their yearly ‘2023 Market Open’, while LNW was up +26.17% trading at 73.34 USD.
We have the next report coming later today, 14 November 2023. Also, as of yesterday’s market close (13 October 2023), LNW’s share price stood at 86.48 USD per share.
That’s an increase of +17.92% since our 31 October 2023 iGaming Stocks Update, and since its 2023 Market Open of 58.12 USD, LNW is now +48.80% in the green.
Outperforming Forecasts – All good on the Western front!
Light & Wonder outperformed the market analysts’ forecasts in Q3, primarily due to higher revenue and a 300% increase in operating (net) income. The company has been laser-focused on streamlining the business, and the long-term strategy is to sell off low-performing assets. LNW has recently sold off its lottery business and sold OpenBet to concentrate on the core business.
To its credit, LNW, listed on the Australian Stock Exchange (2nd listing) this year, increases access to capital in different markets and provides more share liquidity. Adding a new Studio Head in the U.S. to accelerate R&D and output of premium and wide area progression games is also part of their strategy to be at the forefront of the industry.
The company experienced record-setting performance in many divisions in Q3, but the core of the business is still gaming. Machine sales, daily revenue per unit and table products are still the bulk of revenue and have fueled the growth for the last 10 quarters. The success of their business strategy will be tested in the next few quarters as operational efficiencies, top-line growth, and cash flow will be followed closely by investors.
Full financial reports: For the full financial breakdown, please see the Light & Wonder, Inc. Reports Third Quarter 2023 Results here. These results come from the offcial Light & Winder ‘Financial News’ and ‘Investors’ web pages.
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