Light & Wonder Records Tenth Consecutive Quarter of Growth
LISTEN TO THIS ARTICLE:Light & Wonder has now enjoyed ten successive quarters with a 12.8% increase in revenue in Q3, reaching $731 million. This growth was largely fueled by outstanding performances in its SciPlay and iGaming sectors.
SciPlay Acquisition and Secondary Listing
In October, Light & Wonder acquired the remaining shares of SciPlay, a social gaming division it originally spun off in 2019, for over $420 million. Additionally, the company progressed with plans for a secondary listing on the Australian Stock Exchange, having announced this in May and joining the ASX 200 Index in October.
These actions fit with Light & Wonder’s broader, long-term objectives. Last year, the company sold its lottery business to Brookfield Business Partners and finalized the sale of its OpenBet sports betting platform to Endeavor.
We’ve consolidated revenue growing 13% bringing up to 10 consecutive quarters of year-over-year top line growth. I continue to be pleased with the performance consistently delivered since we announced the company’s transformation strategies. This includes two new key milestones, which we achieved recently. And we’re not stopping here. We executed a number of strategic initiatives that continue to strengthen our focus on who we are as a company, a leader in games and platforms with a commitment to accelerating R&D investment to build great games and port them across our three channels.
Numerous Records Broken in Q3
In a breakdown of the quarter’s growth, service revenue rose 11.0% to $503 million, while product revenue increased 16.9% to $228 million. The SciPlay division saw a 14.6% increase in revenue, reaching $196 million, largely due to its core social casino business. The iGaming division also performed strongly, with a 20.7% increase in revenue to $70 million, driven by growth in the US and international markets.
Despite these achievements, gaming remains the main source of revenue for Light & Wonder. In Q3, the gaming division reported $465 million in revenue, an 11% increase from the previous year.
Regarding finances, operating costs dropped by 4.5% to $584 million`. The primary expense was selling, general, and administrative expenses at $204 million. Pre-tax profit from continuing operations was $94 million, a significant increase of 291.7%. However, net profit was 78.2% lower than last year at $75 million, due in part to the previous year’s gain from the sale of the sports betting business.
Year-to-date, Light & Wonder’s revenue reached $2.13 billion, a 16.5% increase from the previous year. Operating costs rose 6.9% to $1.77 billion, but other expenses decreased by 38.7% to $223 million. Net profit for the period was $96 million, a decrease from the previous year’s $3.65 billion, influenced by the sales of the sports betting and lottery businesses.
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