Light & Wonder, the Las Vegas-based cross-platform games company, acquired the last remaining stake in mobile-game company SciPlay and posted surging revenue that topped Wall Street forecasts.
Earnings per share, however, missed forecasts.
In a statement, Light & Wonder, formerly known as Scientific Games, posted a net loss of $1 million, or 1 cent per share, in the three months ended June 30, down from $3.2 million, or $34.61 per share, a year earlier.
The latest per-share result fell short of the 34-cent-per-share consensus forecast of analysts surveyed by Seeking Alpha.
Light & Wonder shares slid on the news, falling 63 cents, or 0.88%, to $71.15 on the Nasdaq Stock Market. The shares sank further after hours, slipping $1.42, or 2%, to settle at $69.73.
Adjusted earnings before interest, taxes, depreciation, and amortization, a cash-flow measure that excludes one-time costs, rose 32.5% to $281 million from $212 million.
Revenue rose 19.8% to $731 million from $610 million and topped the $675.9 million forecast of Seeking Alpha-polled analysts.
In the quarter, gaming revenue rose 21% over a year earlier to $471 million, driven by continued momentum in gaming-machine sales, which jumped 41%.
Gaming-operations revenue increased 20% from a year earlier; table products revenue rose 34%.
Beyond the earnings, the news of the day was that Light & Wonder acquired the last stake in SciPlay, which it spun off in 2019. Light & Wonder had floated an all-stock deal to buy the last 17% stake it didn’t already own in 2021, but withdrew the offer.
On May 18, a special committee at SciPlay received a proposal from Light & Wonder to acquire the stake for $20 per share in cash.
The current offer, which Light & Wonder’s board accepted, was $22.95 per share in an all-cash transaction. The companies expect the deal to close in the fourth quarter.
“We are excited to fully unite SciPlay with Light & Wonder,” Matt Wilson, Light & Wonder’s president and chief executive officer, said in the statement. “Our combined balance sheets will provide us with the flexibility to further invest in developing and launching great games cross-platform and deliver enhanced returns to shareholders.”
In July, Light & Wonder said Chief Financial Officer Connie James will leave the company Aug. 25. Senior Vice President of Corporate Finance Oliver Chow will become interim finance chief until a permanent successor is named.
And in June, Light & Wonder agreed to integrate Shift4’s payment-processing technology into AToM, Light & Wonder’s cashless tabletop debit system. Financial terms weren’t disclosed.
