A 31% global gaming machine sales surge pushed fourth-quarter revenue higher for Light & Wonder. The cross-platform games company also posted its 11th straight quarter of year-over-year earnings growth and watched its stock surge on the news.
In a statement Tuesday, the Las Vegas-based company said its net income was $66 million, or 74 cents per share, for the three months ended Dec. 31, more than doubling the $30 million, or 32 cents per share, the company earned a year earlier. The latest result topped the 68-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 13.9% to $302 million from $265 million.
Revenue rose 12.9% to $770 million from $682 million and topped the $744.1 million consensus forecast of Seeking Alpha-polled analysts.
Light & Wonder reported the results after U.S. stock markets closed Tuesday. The company’s shares added $6.40, or 6.63% to settle at $103 after hours on the Nasdaq. The shares also rose in regular trading, climbing $1.53, or 1.61% to close at $96.60.
“We consistently leverage a differentiated product strategy and plan to capitalize on the significant growth opportunities ahead of us, Light & Wonder Chief Executive Officer Matt Wilson said in a statement accompanying the results. “I am thrilled with the momentum we continue to see in the business, and with our winning mentality, experience, and talent in place, we are well-positioned to continue our growth trajectory.”
In an 8-K filing with the Securities and Exchange Commission, Light & Wonder said average daily revenue per unit increased to $47.91 in the fourth quarter and the company’s North American premium installed game base grew for the 14th consecutive quarter.
Revenue from the mobile SciPlay gaming unit, which Light & Wonder fully reacquired in 2023, had $204 million in fourth-quarter revenue, up 12% from a year earlier and setting a quarterly record.
Internet gaming revenue increased 13% to $70 million in the quarter. Wagers processed through the company’s internet gaming platform hit $21.6 billion.
Light & Wonder also said it decreased its net debt leverage ratio 0.2x from Dec. 31, 2022, and remained within the company’s targeted net debt leverage ratio range of 2.5x to 3.5x.
In 2023, the company bought back 2.4 million shares, or $170 million of common stock for the full year.
On Dec. 13, Light & Wonder named Oliver Chow executive vice president and chief financial officer and treasurer. He’d been interim chief financial officer since August and had previously served as the company’s senior vice president of corporate finance.
For the full year ended Dec. 31, Light & Wonder had net income of $180 million, or $1.75 per share, in the quarter, reversing a year-earlier net loss of $176 million, or $2.09 per share.
Twelve-month revenue hit a record $2.9 billion, up 16% from $2.5 billion a year earlier. Full-year gaming machine sales rose 36% and table game product revenue rose 13%.
