Light & Wonder Yearly Revenue Hits New Record in 2023
LISTEN TO THIS ARTICLE:Light & Wonder saw a 15.5% increase in revenue in its 2023 financial year reaching a record of $2.9 billion aided by the acquisition of SciPlay and a number of other investments.
The company saw revenue increase across all three of its segments, including SciPlay and iGaming. A highlight of the year was acquiring the remaining shares in SciPlay, its social division that it had spun off in 2019. Light & Wonder acquired the 17% holding for more than $420 million and it is now fully integrated into the company’s portfolio.
I’d like to share that the integration has gone well. We are executing our cross-platform strategy through a more harmonized development process across all businesses. I think SciPlay is becoming quite metronomic about the way they just deliver outstanding results after outstanding results. Clearly, it is the fastest-growing social casino company in the industry and is taking a large amount of share. I think it all comes back to having a best-in-class team with a really focused strategy.
Bright Future Following Lottery Sale
In 2022, Light & Wonder sold its lottery business to Brookfield Business Partners for $5.8 billion. Furthermore, the company sold its OpenBet sports betting platform to Endeavor, which has freed resources allowing renewed focus on core business areas.
Light & Wonder also launched a secondary listening on the Australian Securities Exchange in May 2023. Thanks to all of these, Wilson believes that the company now has “long-term sustainable value” that will allow it to continue to invest in its future.
Revenue Growth and Operational Performance
Over the year, Light & Wonder's service revenue increased by 10.9% to $1.99 billion, and product revenue grew by 27.1% to $991 million. The Gaming segment led with $1.85 billion in revenue, a 15.6% increase, driven by higher gaming machine sales and gaming operations revenue. SciPlay's revenue also rose by 15.8% to $777 million, attributed to growth in the core social casino business. Meanwhile, iGaming revenue increased by 14.6% to $275 million, supported by growth both internationally and in the US gambling market.
The company's operating expenses went up by 6.5% to $2.38 billion, with selling, general, and administrative costs rising to $808 million. Despite these increased costs, Light & Wonder reported a $205 million pre-tax profit, a significant turnaround from the previous year's $163 million loss. After accounting for taxes, net profit from continuing operations stood at $180 million. However, due to the high net income from discontinued operations recorded in 2022, the comprehensive net profit for 2023 was $163 million, compared to $3.68 billion the previous year.
In the final quarter of 2023, Light & Wonder saw a 12.9% increase in group revenue, with significant growth across all segments. This performance contributed to a pre-tax profit of $65 million for the quarter, up 150.0% year-on-year, and a net profit of $67 million.
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