Light & Wonder Reports Revenue Growth in September Quarter, Reaffirms Full-Year Guidance Amid Legal Challenges

2 min read | November 13, 2024 01:28 PM AEDT | By Team Kalkine Media

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Light & Wonder Reports Revenue Growth in September Quarter, Reaffirms Full-Year Guidance Amid Legal Challenges — Image source: Shutterstock

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Strong Quarterly Performance: Light & Wonder reports a 12% year-on-year increase in revenue, reaching US$817 million in Q3, driven by a 15% rise in gaming revenue.

Growth in Key Segments: Gaming machine sales grew 38%, while its social casino and iGaming segments saw growth of 5% and 6%, respectively.

Adjusted NPATA & AEBITDA Growth: Adjusted NPATA increased by 23% to US$122 million, and AEBITDA rose 12% to US$319 million.

Legal Setback with Dragon Train Machines: A U.S. district court injunction threatens the company’s Dragon Train-themed poker machines, with Aristocrat claiming copyright infringement.

Gaming company Light & Wonder (ASX:LNW) has reaffirmed its full-year financial guidance after reporting robust results for the September 2024 quarter. The company's consolidated revenue increased by 12% year on year, totaling US$817 million (AU$1.25 billion). Gaming revenue led the charge, rising 15%, largely driven by a strong 38% growth in global gaming machine sales.

The company also saw positive growth in its other segments, with its social casino business, SciPlay, growing 5%, and iGaming, which includes sports betting and online gambling, up by 6%. Despite a 20% drop in net income to US$64 million, primarily due to higher restructuring and legal expenses, adjusted NPATA grew 23% to US$122 million, and consolidated AEBITDA increased 12% to US$319 million.

For the full-year FY25, Light & Wonder has set an adjusted NPATA guidance range of US$565 million to US$635 million and reaffirmed its AEBITDA target of US$1.4 billion.

However, the company faces legal challenges regarding its Dragon Train-themed poker machines, which have been subject to a copyright infringement claim from rival Aristocrat. Light & Wonder has replaced or converted 95% of its 2,200 Dragon Train machines during the quarter. While the legal matter is ongoing, the company estimates that Dragon Train’s contribution to its 2025 AEBITDA target will be less than 5%, mitigating potential financial impacts.

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