Light and Wonder reports strong growth, revenue up 4% in Q4
Gaming equipment and services group Light & Wonder (L&W) has reported continued strong revenue growth for the recent quarter (Q4), achieving 15 consecutive quarters of consolidated yearly revenue growth.
In its recent financial update, the group reported a 4 percent increase in fourth-quarter revenue, reaching $797 million. For the period, the company’s consolidated adjusted earnings before interest, taxes, depreciation and amortisation (AEBITDA) increased by 4 percent yearly, totalling $315 million.
Gaming revenue for Light & Wonder reached $515 million. This marked a 4 percent increase from the same period last year. The growth was primarily led by revenue from gaming systems and table products. Gaming systems revenue grew by 24 percent to hit $88 million. Whereas table products saw a 10 percent increase, reaching $57 million in revenue.
The company’s gaming operations revenue also rose by 4.1 percent to $175 million. On the flip side, gaming machine sales revenue saw a slight decline of 4.87 percent, down to $195 million. This was despite a 25 percent year-on-year increase in in North American shipments, which were mainly driven by “replacement units with support from new casino openings and expansions.” Overall global unit shipments fell by 21 percent to 9,589 units. International unit shipments, in particular, experienced a sharp 51 percent decline, totaling 3,609 units.
Full-year figures
For the full-year, L&W’s total revenue grew by 10 percent year-over-year, reaching nearly $3.2 billion. NPATA for the year saw a significant boost of 24 percent to register $480 million. Consolidated AEBITDA rose by 11 percent to $1.24 billion.
Key gaming segments posted positive results, with gaming operations revenue up 4 percent to $690 million, and gaming machine sales revenue soaring by 22 percent to reach $895 million. However, table products revenue declined slightly by 1 percent to $211 million.
President and CEO of L&W Matt Wilson said “We ended a strong 2024 with continued double-digit revenue and earnings growth for the year. This year, the Gaming machine sales share gains in North America and Australia are a testament to our R&D investment, commercial strategy and robust product roadmap.”
He also commented on the recent acquisition of Grover Gaming’s charitable business by the company. He said the acquisition “enhances our cross-platform strategy and presence in regulated land-based markets, giving us a broader distribution base for our vast content library and accelerating our drive for sustainable future growth.”
Strategic acquisitions
The acquisition deal between Light & Wonder and Grover Gaming involves an initial cash payment of $850 million, and a four-year earn-out arrangement based on revenue performance, with the potential for an additional $200 million in cash.
Under the terms of the agreement stated in the company release, Garett Blackwelder, the founder of Grover Charitable Gaming, will collaborate with L&W over the next three years. Grover Gaming’s established footprint across five states provides L&W with access to a loyal customer base, along with a robust infrastructure of over 10,000 leased electronic pull-tab units. The acquisition deal is subject to regulatory approval, which is expected to be finalised by the second quarter of 2025.
The company also noted plans of “both a dual primary and a sole listing on the ASX (Australian Securities Exchange).” Advisors have been contacted to evaluate potential strategies to achieve the objective. L&W said it is seeking feedback from key stakeholders regarding the same.
L&W’s Chair of the Board of Directors, Jamie Odell said about the potential move, “The ASX is a premier exchange with a strong history of supporting global gaming companies, offering access to a deep and liquid market of sophisticated investors and industry participants with a comprehensive understanding of the gaming sector. We look forward to engaging with the market and our existing shareholders to further elevate the profile of our ASX listing”.
