Casino equipment and online games provider Light & Wonder Inc(L&W) reported a notable surge in first-quarter revenue, reaching US$756 million, marking a 12.8% increase from the previous year. Although the latest quarterly revenue experienced a slight dip of 1.8% sequentially, the company expressed satisfaction with its performance, as stated in a Wednesday press release.

Robust revenue growth and earnings:

The company attributed the revenue growth to “continued double-digit revenue growth” across all its businesses, resulting in robust earnings growth. Light & Wonder’s net income attributable to shareholders saw a significant rise of 272.7% year-on-year, reaching US$82 million for the first quarter. Additionally, the adjusted consolidated earnings before interest, taxation, depreciation, and amortization (EBITDA) surged by 12.9% year-on-year to US$281 million.

Light & Wonder operates through three main segments: land-based gaming, the digital games unit SciPlay, and iGaming. The company’s president and chief executive, Matt Wilson, expressed satisfaction with the global product offerings, which drove game sales growth in various markets, including North America, Australia, and Asia.

He said in an official press release: “Our strong momentum continued into 2024 across the business with our compelling global product offerings driving Game Sales growth in North American adjacent markets and in International markets led by Australia and Asia. SciPlay and iGaming both reached record revenue levels yet again with consistent double-digit year-over-year growth. The performance in the quarter validates our execution plan and we expect growth to be further enhanced by key hardware and content launches in both our land-based and digital markets throughout the year. Our differentiated product roadmap and targeted commercial strategy enable us to capitalize on growth opportunities beyond our solidified core businesses. We will continue to execute on our initiatives to deliver sustainable growth underpinned by our robust product portfolio and world-class talent.”

JP Morgan analysts noted that Light & Wonder’s first-quarter results exceeded market consensus, with a strong performance in land-based gaming. They highlighted the success of gaming machine sales, particularly in Australia, and anticipated continued momentum in subsequent quarters.

Gaming machine shipments and sales:

During the first quarter of 2024, Light & Wonder shipped 9,696 new gaming machine units, representing a notable increase of 26.3% from the previous year. The value of gaming machine sales globally also saw a significant uptick, reaching US$205 million, up 29.7% from the prior-year period.

The gaming segment, including gaming operations, witnessed a substantial revenue increase of 13.6% year-on-year, reaching US$476 million. SciPlay generated US$206 million in revenue, marking a 10.8% increase, while the iGaming segment reported revenue of US$74 million, up 13.8% year-on-year.

Financial outlook and debt leverage:

Despite the strong performance, Light & Wonder maintained a prudent approach to debt management, with its net debt leverage ratio declining to 3.0x from 3.1x at the end of 2023. The company reiterated its financial year 2025 annual EBITDA target of US$1.4 billion, signaling expectations of sustained growth in the coming years.