Company records for financial and operational performance were posted by Light & Wonder in fourth-quarter numbers released late on February 25. “We ended a strong 2024 with continued double-digit revenue and earnings growth for the year,” stated CEO Matt Wilson.
“The gaming-machine-sales share gains in North America and Australia this year are a testament to our R&D investment, commercial strategy, and product roadmap,” Wilson continued. He reiterated the synergies and new-market acquisitions made possible by Light & Wonder’s purchase of Grover Gaming, announced on February 18.
Added CFO Oliver Chow, “We expect that the acquisition of Grover Gaming’s charitable business will contribute to our expansive recurring-revenue base and is complementary and synergistic to our high-margin and cash-generative business, enhancing our growth profile and cross-platform strategy.” He observed that the company had repurchased $462 million of LNW shares in 2024, $243 million in the final quarter alone.
At the time of the report, Light & Wonder’s debt load was $3.9 billion or three times cash flow. The company said that placed it within the desired range of two-and-a-half- to three-and-a-half-times cash flow.
Light & Wonder also announced the settlement of 2019 litigation over automatic shufflers. It will pay TCS John Huxley $72.5 million to drop the matter, without any admission of then-Scientific Games liability.
Looking ahead to first-quarter earnings of this year, Light & Wonder executives predicted low-double-digit growth in cash flow. They cited “the timing dynamics of game sales and high-return investment opportunities, both of which are expected to drive enhanced organic growth as the year progresses.”
Revenue for the fourth quarter was $797 million, up from $770 million in the final quarter of 2023. Profit also expanded from $67 million to $107 million, spurred by a $28 million asset sale.
Capital expenditures grew from $60 million to $70 million. Cash on hand shrank from $425 million to $196 million, while debt remained steady.
Although SciPlay social-casino revenues were flat at $204 million, igaming winnings were up 11 percent to $78 million. Traditional gaming revenue, including systems sales, was up four percent, reaching $515 million.
Light & Wonder counted a slot machine population of 34,004 units in North America alone, with daily win per unit averaging $47.25. Late 2024 saw the 18th consecutive quarter of growth of Light & Wonder’s installed base.
The company will pursue a dual primary and a sole listing on the Australian Stock Exchange. To this end, it has retained Goldman Sachs as a strategic advisor.
Explained Chairman of the Board Jamie Odell, “The ASX is a premier exchange with a strong history of supporting global gaming companies, offering access to a deep and liquid market of sophisticated investors and industry participants with a comprehensive understanding of the gaming sector. We look forward to engaging with the market and our existing shareholders to further elevate the profile of our ASX listing.”
