Light & Wonder highlighted research-and-development streamlining and preparations to list its stock in Australia as it posted first-quarter revenue that topped Wall Street forecasts. Although the company reversed its year-earlier loss, earnings per share missed forecasts.
The Las Vegas-based cross-platform games company, formerly known as Scientific Games, said in a Tuesday Securities and Exchange Commission filing that net income was $27 million, or 23 cents per share, for the three months ended March 31, reversing a year-earlier net loss of $67 million, or 72 cents per diluted share.
The latest result missed the 25-cents-per-share consensus forecast of analysts polled by Seeking Alpha. Light & Wonder said higher revenue and operating income combined with lower interest expense to fuel the reversal.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose $23.3% to $249 million for $202 million.
Revenue rose 17.1% to $670 million from $572 million and topped the $632.1 million consensus forecast of Seeking Alpha-polled analysts. An 18% jump in gaming revenue, driven by a 53% year-over-year increase in gaming-machine sales, stoked the overall increase.
In a conference call with analysts and journalists, Light & Wonder Chief Executive Officer Matt Wilson said research-and-development consolidation and collaboration quickened development and market delivery of new products.
“We’re making continued progress toward the execution of our cross-platform roadmap and long-term goals and have delivered on several key metrics, including double-digit top- and bottom-line growth on a year-on-year basis,” he said. “We will continue to work with our partners on cross-channel promotions and expect both our original land-based content and digital-promoted content to be deployed more broadly.”
Light & Wonder said its board of directors approved a secondary listing on the Australian Securities Exchange. The move will benefit the company and shareholders by opening new access to long-term institutional investors.
Wilson said he expected approval of the listing by the end of the second quarter.
“The Australian Stock Exchange is a premium market with a long track record as a platform for global gaming companies, and a deep and liquid pool of investors and market participants who understand the gaming business,” Wilson said. “This is an important market for us and a natural progression of our strategy.”
In the quarter, Light & Wonder shipped more than 7,678 units globally, 4,057 units in North America and 3,621 units internationally, to yield $158 million in first-quarter gaming revenue. The average sales price per unit rose 9.6%.
Light & Wonder’s SciPlay unit posted record revenue of $186 million, an 18% year-to-year increase, driven by SciPlay’s core social-casino business.
Light & Wonder shares rose 65 cents, or 1.09%, Tuesday to close at $59.83 on the Nasdaq Stock Market.
