Light & Wonder bought back the last piece of SciPlay, the social-gaming business it once spun off, during the third quarter and the momentum carried. Revenue and earnings per share of the Las Vegas cross-platform games company charged past Wall Street expectations.
In a Thursday 10-K filing with the Securities and Exchange Commission, Las Vegas-based Light & Wonder, once known as Scientific Games, said its net income was $75 million, or 81 cents per share, for the three months ended Sept. 30, up from net income of $328 million, or $3.42 per share, a year earlier.
The latest result topped the 41-cents-per-share consensus forecast of analysts surveyed by Seeking Alpha.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 21.7% to $286 million from $235 million a year earlier.
Revenue rose 12.8% to $731 million from $648 million and topped the consensus $717.3 million forecast on Seeking Alpha-polled analysts.
Light & Wonder’s revenue increased across its business segments during the quarter. Gaming revenue rose 11% year to year to $465 million; gaming machine sales revenue rose 23% to $172 million and SciPlay revenue rose 15% to $196 million, a record.
Light & Wonder said year-over-year growth in its North American installed-base placements and average daily revenue per unit buoyed gaming operations revenue. Total game shipments in the quarter rose 19.6% to 8,685 from 7,259 a year earlier.
The deal for the 17% stake in SciPlay closed Oct. 23; Light & Wonder paid $496 million, excluding transaction and advisory fees. On Oct. 18, Light & Wonder joined the S&P/ASX 200 Index in Australia. In the statement, Chief Executive Officer Matt Wilson called both moments milestones.
“We had successful showings at both the Australasian and Global Gaming Expos with the strength of our product portfolio on full display,” Wilson said in the statement. “The positive feedback we received on our wide range of cabinets and games further validates our focused investment in (research and development) and vision for the future of the company.”
Interim Chief Financial Officer Oliver Chow added, “We have a strong financial profile and capital structure, which positions us well in our current growth stage, providing us with flexibility to invest as we advance toward our strategic and financial goals.”
The company also bought back about 1.5 million shares of common stock during the quarter.
Light and Wonder shares fell $1.68, or 2.11%, to close at $78.07 on the Nasdaq Stock Market. The shares gained after hours, adding 83 cents, or 1.06% to settle at $78.90.
