Game-maker Light & Wonder reported a slightly narrower $64 million profit for the third quarter of 2024. The results didn’t greatly reflect the removal of Dragon Train, enjoined by a U.S. District Court on September 23.
The company recorded a ninth straight quarter of double-digit revenue growth and repurchased $44 million in stock. Consolidated revenue was up 12 percent. Cash flow grew from $286 million to $319 million.
In the gaming division, revenue was $537 million, an increase of 15 percent, mainly propelled by slot machine sales, which were up 38 percent. Social gaming was remunerative as well, with SciPlay grossing $206 million, five percent higher and comprising 12 percent of overall Light & Wonder business.
Internet gambling revenue was dimmed somewhat by the non-recurrence of a $3 million license-termination fee in the third quarter of 2023. However, it constituted $74 million, a six percent increase.
Debt outstanding was $3.9 billion. This represented a 2.9-times debt-to-cash flow ratio, down from 3.1 times.
Capital expenditures were relatively stable at $71 million, up from 2023’s $70 million. But net cash from operations dwindled from $204 million to $119 million.
Nonetheless, CEO Matt Wilson was upbeat. “”Our results once again reflect the relentless collective efforts of the talent across our organization underpinned by our robust and scalable R&D platform.”
Reflecting on the recent Global Gaming Expo in Las Vegas, he said, “We showcased a wide array of products that demonstrated the diversity and strength of our portfolio and franchises. We will continue to execute on our cross-platform strategy focused on innovative content and products as a leading global end-to-end gaming technology solutions provider.”
Elaborated CFO Oliver Chow, “The highly cash-generative nature of our business, combined with a healthy balance sheet and strategic capital-allocation program, have proven to be a strong framework to create shareholder value. We plan to further accelerate this value-creation flywheel through continued R&D and capex investments, as well as through financial means such as our share-repurchase program.”
Shares of Light & Wonder slipped nine percent in early Wall Street trading. At press time, they traded at $93.30 per share.
