Delivered Consolidated Revenue Growth of 13%
Year-Over-Year on Strong Gaming Machine Sales and Record SciPlay
and iGaming Revenue
Double-Digit Revenue Growth Across all
Businesses Driving Strong Cash Flow Generation
Light & Wonder, Inc. (NASDAQ and ASX: LNW) (“Light &
Wonder,” “L&W,” “we” or the “Company”) today reported results
for the first quarter ended March 31, 2024.
We started 2024 on a strong note, delivering a 12th consecutive
quarter of year-over-year consolidated revenue growth and
generating strong cash flow, while continuing to execute on our
robust content roadmap and cross-platform strategy. Consolidated
revenue grew 13%, driven by continued double-digit revenue growth
across all of our businesses, resulting in robust earnings growth
as we continue to progress towards our long-term financial
targets:
- Gaming revenue increased to $476 million, up 14% compared to
the prior year period, primarily driven by global Gaming machine
sales growth, which increased 30%, coupled with growth across
Gaming operations and Gaming systems.
- SciPlay revenue grew to a quarterly revenue record of $206
million, an 11% increase from the prior year period, driven by the
core social casino business, which continues to outpace the market
and gain share on strong payer metrics.
- iGaming revenue increased 14% to a quarterly revenue record of
$74 million, primarily reflecting continued momentum in the U.S.
and international markets.
Matt Wilson, President and Chief Executive Officer of Light
& Wonder, said, “Our strong momentum continued into 2024
across the business with our compelling global product offerings
driving Game Sales growth in North American adjacent markets and in
International markets led by Australia and Asia. SciPlay and
iGaming both reached record revenue levels yet again with
consistent double-digit year-over-year growth. The performance in
the quarter validates our execution plan and we expect growth to be
further enhanced by key hardware and content launches in both our
land-based and digital markets throughout the year. Our
differentiated product roadmap and targeted commercial strategy
enable us to capitalize on growth opportunities beyond our
solidified core businesses. We will continue to execute on our
initiatives to deliver sustainable growth underpinned by our robust
product portfolio and world-class talent.”
Oliver Chow, Chief Financial Officer of Light &
Wonder, added, “We remain on a healthy growth trajectory with
six consecutive quarters of double-digit revenue growth across
Gaming, SciPlay and iGaming, a testament to the power of our
R&D engine, as we continue to deploy engaging content enjoyed
by players across all of our platforms. Our financial performance
highlights the strength of our team across all of our segments. We
will continue to reinvest back into the business to further scale
revenue and profitability. Given our strong growth and the highly
cash generative nature of our business, we plan to further enhance
value through our share repurchase program, while maintaining the
rigor of our strategic capital allocation plan.”
LEVERAGE AND CAPITAL RETURN UPDATE
- Principal face value of debt outstanding(1) was $3.9
billion, translating to a net debt leverage ratio(2) of 3.0x as
of March 31, 2024. Our net debt leverage ratio(2) decreased by 0.1x
from December 31, 2023, and remained within our targeted net debt
leverage ratio(2) range of 2.5x to 3.5x.
- Returned $25 million of capital to shareholders through
the repurchase of approximately 0.2 million shares of L&W
common stock during the quarter. Since the initiation of the
program, we have returned $600 million of capital to shareholders
through the repurchase of approximately 9.7 million shares of
L&W common stock, representing 80% of total program
authorization.
SUMMARY RESULTS
Three Months Ended March
31,
($ in millions)
2024
2023
Revenue
$
756
$
670
Net income
82
27
Net income attributable to L&W
82
22
Net cash provided by operating
activities
171
185
Capital expenditures
66
53
Non-GAAP Financial
Measures(2)
Consolidated AEBITDA
$
281
$
249
Adjusted NPATA
105
86
Free cash flow
93
74
As of
Balance Sheet
Measures
March 31, 2024
December 31, 2023
Cash and cash equivalents
$
450
$
425
Total debt
3,874
3,874
Available liquidity(3)
1,190
1,165
(1) Principal face value of debt
outstanding represents outstanding principal value of debt balances
that conform to the presentation found in Note 10 to the Condensed
Consolidated Financial Statements in our March 31, 2024 Form
10-Q.
(2) Additional information on non-GAAP
financial measures presented herein is available at the end of this
release.
(3) Available liquidity is calculated as
cash and cash equivalents plus remaining revolver capacity.
First Quarter 2024 Financial Highlights
- First quarter consolidated revenue was $756 million
compared to $670 million, a 13% increase compared to the prior year
period and a 12th consecutive quarter of year-over-year growth,
driven by strong performance across all lines of business. Gaming
revenue increased 14%, primarily led by continued growth in Gaming
machine sales, which grew 30% year-over-year. SciPlay revenue grew
by 11%, and iGaming revenue increased by 14%, both reaching new
quarterly records.
- Net income was $82 million compared to $27 million in
the prior year period, primarily due to higher revenue and
consistently strong margins, along with lower D&A and
restructuring and other costs.
- Consolidated AEBITDA(1) was $281 million compared to
$249 million in the prior year period, a 13% increase that was
driven by strong revenue growth and sustained margin strength
across all of our businesses.
- Adjusted NPATA(1) increased 22% to $105 million as
compared to $86 million in the prior year period, primarily due to
strong revenue growth across all of our businesses.
- Net cash provided by operating activities was $171
million compared to $185 million in the prior year period, with the
current year impacted by unfavorable changes in working capital
primarily due to restricted customer deposits.
- Free cash flow(1) was $93 million compared to $74
million in the prior year period. The current year period is
reflective of strong earnings, which were partially offset by less
favorable changes in working capital compared to the prior year
period.
BUSINESS SEGMENT HIGHLIGHTS FOR THE
THREE MONTHS ENDED MARCH 31, 2024
We report our operations in three business segments—Gaming,
SciPlay and iGaming—representing our different products and
services.
($ in millions)
Revenue
AEBITDA
AEBITDA Margin(2)(3)
2024
2023
$
%
2024
2023
$
%
2024
2023
PP Change(3)
Gaming
$
476
$
419
$
57
14
%
$
232
$
206
$
26
13
%
49
%
49
%
—
SciPlay
206
186
20
11
%
62
54
8
15
%
30
%
29
%
1
iGaming
74
65
9
14
%
25
23
2
9
%
34
%
35
%
(1
)
Corporate and other(4)
—
—
—
—
%
(38
)
(34
)
(4
)
(12
)%
n/a
n/a
n/a
Total
$
756
$
670
$
86
13
%
$
281
$
249
$
32
13
%
37
%
37
%
—
PP — percentage points.
n/a — not applicable.
(1) Represents a non-GAAP financial
measure. Additional information on non-GAAP financial measures
presented herein is available at the end of this release.
(2) Segment AEBITDA Margin is calculated
as segment AEBITDA as a percentage of segment revenue.
(3) As calculations are made using whole
dollar numbers, actual results may vary compared to calculations
presented in this table.
(4) Includes amounts not allocated to the
business segments (including corporate costs) and other
non-operating expenses (income).
First Quarter 2024 Business Segments Key Highlights
- Gaming revenue increased to $476 million, up 14%
compared to the prior year period, primarily driven by global
Gaming machine sales growth of 30% and Gaming systems growth of 9%.
Gaming operations revenue increased 3%, benefiting from
year-over-year growth in our North American installed base and
average daily revenue per unit, which increased to $48.82. Our
North American premium installed base grew for the 15th consecutive
quarter, representing 49% of our total installed base mix. Our
growth is driven by the continued strength and success of our
content, including the recent debut of DRAGON TRAIN® in the U.S.,
and persistent success of our COSMIC™ and MURAL® cabinets. Gaming
AEBITDA was $232 million, up 13% compared to the prior year period,
primarily driven by revenue growth in the period.
- SciPlay revenue was $206 million, an 11% increase from
the prior year period and another quarterly record, while AEBITDA
increased 15% to $62 million, reflective of continuing revenue
growth, partially offset by higher targeted and planned marketing
spend. Growth was primarily driven by the core social casino
business, which continued to deliver record player engagement and
monetization leveraging game content, dynamic Live Ops through the
SciPlay Engine and effective marketing strategies. SciPlay
maintained its number of payers at 0.6 million and achieved its
highest ever AMRPPU(1) of $113.93, enabling SciPlay to grow
ARPDAU(2) by 13% year-over-year to a record $1.01 while maintaining
payer conversion above 10%.
- iGaming revenue increased 14% to a quarterly revenue
record of $74 million in the current year period, while AEBITDA
grew 9% with continued momentum in the U.S. and international
markets as well as strong first-party content launches. Wagers
processed through our iGaming platform have increased to $22.4
billion in the first quarter.
- Capital expenditures were $66 million in the first
quarter of 2024 as compared to $53 million in the prior year
period, primarily due to investments made to support our Gaming
operations growth.
(1) Average Monthly Revenue Per Paying
User.
(2) Average Revenue Per Daily Active
User.
Earnings Conference Call
As previously announced, Light & Wonder executive leadership
will host a conference call on Wednesday, May 8, 2024 at 4:30 p.m.
EST to review the Company’s first quarter results. To access the
call live via a listen-only webcast and presentation, please visit
explore.investors.lnw.com and click on the webcast link under the
Events and Presentations section. To access the call by telephone,
please dial: +1 (833) 470-1428 for U.S., +61 2 7908-3093 for
Australia or +1 (404) 975-4839 for International and ask to join
the Light & Wonder call using conference ID: 539204. A replay
of the webcast will be archived in the Investors section on
www.lnw.com.
About Light & Wonder
Light & Wonder, Inc. is the leading cross-platform global
games company. Through our three unique, yet highly complementary
businesses, we deliver unforgettable experiences by combining the
exceptional talents of our 6,000+ member team, with a deep
understanding of our customers and players. We create immersive
content that forges lasting connections with players, wherever they
choose to engage. At Light & Wonder, it’s all about the games.
The Company is committed to the highest standards of integrity,
from promoting player responsibility to implementing sustainable
practices. To learn more visit www.lnw.com.
You can access our filings with the Securities Exchange
Commission (“SEC”) through the SEC website at www.sec.gov, with the
Australian Stock Exchange (“ASX”) through the ASX website at
www.asx.com.au or through our website, and we strongly encourage
you to do so. We routinely post information that may be important
to investors on our website at explore.investors.lnw.com, and we
use our website as a means of disclosing material information to
the public in a broad, non-exclusionary manner for purposes of the
SEC’s Regulation Fair Disclosure.
The information contained on, or that may be accessed through,
our website is not incorporated by reference into, and is not a
part of, this document, and shall not be deemed “filed” under the
Securities Exchange Act of 1934, as amended.
All ® notices signify marks registered in the United States. ©
2024 Light & Wonder, Inc. All Rights Reserved.
Forward-Looking Statements
In this press release, Light & Wonder makes “forward-looking
statements” within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements describe
future expectations, plans, results or strategies and can often be
identified by the use of terminology such as “may,” “will,”
“estimate,” “intend,” “plan,” “continue,” “believe,” “expect,”
“anticipate,” “target,” “should,” “could,” “potential,”
“opportunity,” “goal,” or similar terminology. These statements are
based upon current Company management (“Management”) expectations,
assumptions and estimates and are not guarantees of timing, future
results or performance. Therefore, you should not rely on any of
these forward-looking statements as predictions of future events.
Actual results may differ materially from those contemplated in
these statements due to a variety of risks and uncertainties and
other factors, including, among other things:
- our inability to successfully execute our strategy;
- slow growth of new gaming jurisdictions, slow addition of
casinos in existing jurisdictions and declines in the replacement
cycle of gaming machines;
- risks relating to foreign operations, including anti-corruption
laws, fluctuations in currency rates, restrictions on the payment
of dividends from earnings, restrictions on the import of products
and financial instability;
- difficulty predicting what impact, if any, new tariffs imposed
by and other trade actions taken by the U.S. and foreign
jurisdictions could have on our business;
- U.S. and international economic and industry conditions,
including increases in benchmark interest rates and the effects of
inflation;
- public perception of our response to environmental, social and
governance issues;
- the effects of health epidemics, contagious disease outbreaks
and public perception thereof;
- changes in, or the elimination of, our share repurchase
program;
- resulting pricing variations and other impacts of our common
stock being listed to trade on more than one stock exchange;
- level of our indebtedness, higher interest rates, availability
or adequacy of cash flows and liquidity to satisfy indebtedness,
other obligations or future cash needs;
- inability to further reduce or refinance our indebtedness;
- restrictions and covenants in debt agreements, including those
that could result in acceleration of the maturity of our
indebtedness;
- competition;
- inability to win, retain or renew, or unfavorable revisions of,
existing contracts, and the inability to enter into new
contracts;
- risks and uncertainties of potential changes in U.K. gaming
legislation, including any new or revised licensing and taxation
regimes, responsible gambling requirements and/or sanctions on
unlicensed providers;
- inability to adapt to, and offer products that keep pace with,
evolving technology, including any failure of our investment of
significant resources in our R&D efforts;
- the outcome of any legal proceedings that may be instituted
following completion of the SciPlay merger;
- failure to retain key Management and employees;
- unpredictability and severity of catastrophic events, including
but not limited to acts of terrorism, war, armed conflicts or
hostilities, the impact such events may have on our customers,
suppliers, employees, consultants, business partners or operations,
as well as Management’s response to any of the aforementioned
factors;
- changes in demand for our products and services;
- dependence on suppliers and manufacturers;
- SciPlay’s dependence on certain key providers;
- ownership changes and consolidation in the gaming
industry;
- fluctuations in our results due to seasonality and other
factors;
- risks as a result of being publicly traded in the United States
and Australia, including price variations and other impacts
relating to the secondary listing of the Company’s common stock on
the Australian Securities Exchange;
- the possibility that we may be unable to achieve expected
operational, strategic and financial benefits of the SciPlay
merger;
- security and integrity of our products and systems, including
the impact of any security breaches or cyber-attacks;
- protection of our intellectual property, inability to license
third-party intellectual property and the intellectual property
rights of others;
- reliance on or failures in information technology and other
systems;
- litigation and other liabilities relating to our business,
including litigation and liabilities relating to our contracts and
licenses, our products and systems, our employees (including labor
disputes), intellectual property, environmental laws and our
strategic relationships;
- reliance on technological blocking systems;
- challenges or disruptions relating to the completion of the
domestic migration to our enterprise resource planning system;
- laws and government regulations, both foreign and domestic,
including those relating to gaming, data privacy and security,
including with respect to the collection, storage, use,
transmission and protection of personal information and other
consumer data, and environmental laws, and those laws and
regulations that affect companies conducting business on the
internet, including online gambling;
- legislative interpretation and enforcement, regulatory
perception and regulatory risks with respect to gaming, especially
internet wagering and social gaming;
- changes in tax laws or tax rulings, or the examination of our
tax positions;
- opposition to legalized gaming or the expansion thereof and
potential restrictions on internet wagering;
- significant opposition in some jurisdictions to interactive
social gaming, including social casino gaming and how such
opposition could lead these jurisdictions to adopt legislation or
impose a regulatory framework to govern interactive social gaming
or social casino gaming specifically, and how this could result in
a prohibition on interactive social gaming or social casino gaming
altogether, restrict our ability to advertise our games, or
substantially increase our costs to comply with these
regulations;
- expectations of shift to regulated digital gaming;
- inability to develop successful products and services and
capitalize on trends and changes in our industries, including the
expansion of internet and other forms of digital gaming;
- the continuing evolution of the scope of data privacy and
security regulations, and our belief that the adoption of
increasingly restrictive regulations in this area is likely within
the U.S. and other jurisdictions;
- incurrence of restructuring costs;
- goodwill impairment charges including changes in estimates or
judgments related to our impairment analysis of goodwill or other
intangible assets;
- stock price volatility;
- failure to maintain adequate internal control over financial
reporting;
- dependence on key executives;
- natural events that disrupt our operations, or those of our
customers, suppliers or regulators; and
- expectations of growth in total consumer spending on social
casino gaming.
Additional information regarding risks and uncertainties and
other factors that could cause actual results to differ materially
from those contemplated in forward-looking statements is included
from time to time in our filings with the SEC, including the
Company’s current reports on Form 8-K, quarterly reports on Form
10-Q and its latest annual report on Form 10-K filed with the SEC
for the year ended December 31, 2023 on February 27, 2024
(including under the headings “Forward Looking Statements” and
“Risk Factors”). Forward-looking statements speak only as of the
date they are made and, except for our ongoing obligations under
the U.S. federal securities laws, we undertake no and expressly
disclaim any obligation to publicly update any forward-looking
statements whether as a result of new information, future events or
otherwise.
You should also note that this press release may contain
references to industry market data and certain industry forecasts.
Industry market data and industry forecasts are obtained from
publicly available information and industry publications. Industry
publications generally state that the information contained therein
has been obtained from sources believed to be reliable, but that
the accuracy and completeness of that information is not
guaranteed. Although we believe industry information to be
accurate, it is not independently verified by us and we do not make
any representation as to the accuracy of that information. In
general, we believe there is less publicly available information
concerning the international gaming, social and digital gaming
industries than the same industries in the U.S.
Due to rounding, certain numbers presented herein may not
precisely recalculate.
LIGHT & WONDER, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited, in millions,
except per share amounts)
Three Months Ended
March 31,
2024
2023
Revenue:
Services
$
517
$
477
Products
239
193
Total revenue
756
670
Operating expenses:
Cost of services(1)
112
108
Cost of products(1)
107
94
Selling, general and administrative
218
192
Research and development
62
54
Depreciation, amortization and
impairments
86
101
Restructuring and other
6
19
Total operating expenses
591
568
Operating income
165
102
Other (expense) income:
Interest expense
(75
)
(75
)
Other income (expense), net
10
(1
)
Total other expense, net
(65
)
(76
)
Net income before income taxes
100
26
Income tax (expense) benefit
(18
)
1
Net income
82
27
Less: Net income attributable to
noncontrolling interest
—
5
Net income attributable to L&W
$
82
$
22
Basic and diluted net income attributable
to L&W per share:
Basic
$
0.91
$
0.24
Diluted
$
0.88
$
0.23
Weighted average number of shares used in
per share calculations:
Basic shares
90
91
Diluted shares
92
93
(1) Excludes depreciation, amortization
and impairments.
LIGHT & WONDER, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited, in
millions)
March 31,
December 31,
2024
2023
Assets:
Cash and cash equivalents
$
450
$
425
Restricted cash
97
90
Receivables, net of allowance for credit
losses of $33 and $38, respectively
504
506
Inventories
175
177
Prepaid expenses, deposits and other
current assets
114
113
Total current assets
1,340
1,311
Restricted cash
6
6
Receivables, net of allowance for credit
losses of $7 and $3, respectively
57
37
Property and equipment, net
246
236
Operating lease right-of-use assets
48
52
Goodwill
2,925
2,945
Intangible assets, net
568
605
Software, net
160
158
Deferred income taxes
166
142
Other assets
72
60
Total assets
$
5,588
$
5,552
Liabilities and Stockholders’
Equity:
Current portion of long-term debt
$
22
$
22
Accounts payable
211
241
Accrued liabilities
381
404
Income taxes payable
63
29
Total current liabilities
677
696
Deferred income taxes
20
20
Operating lease liabilities
34
39
Other long-term liabilities
170
180
Long-term debt, excluding current
portion
3,852
3,852
Total stockholders’ equity
835
765
Total liabilities and stockholders’
equity
$
5,588
$
5,552
LIGHT & WONDER, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited, in
millions)
Three Months Ended
March 31,
2024
2023
Cash flows from operating activities:
Net income
$
82
$
27
Adjustments to reconcile net income to net
cash provided by operating activities
110
138
Changes in working capital accounts,
excluding the effects of acquisitions
6
32
Changes in deferred income taxes and
other
(27
)
(12
)
Net cash provided by operating
activities
171
185
Cash flows from investing activities:
Capital expenditures
(66
)
(53
)
Other(1)
(5
)
(4
)
Net cash used in investing activities
(71
)
(57
)
Cash flows from financing activities:
Payments of long-term debt, net
—
(6
)
Payments of debt issuance and deferred
financing costs
(2
)
—
Payments on license obligations
(5
)
(12
)
Purchase of L&W common stock
(25
)
(28
)
Purchase of SciPlay’s common stock
—
(8
)
Net redemptions of common stock under
stock-based compensation plans and other
(33
)
(11
)
Net cash used in financing activities
(65
)
(65
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(3
)
—
Increase in cash, cash equivalents and
restricted cash
32
63
Cash, cash equivalents and restricted
cash, beginning of period
521
967
Cash, cash equivalents and restricted
cash, end of period
$
553
$
1,030
Supplemental cash flow information:
Cash paid for interest
$
63
$
63
Income taxes paid
8
9
Supplemental non-cash transactions:
Non-cash interest expense
$
2
$
3
(1) The three months ended March 31, 2023
includes $3 million in cash used in discontinued operations.
LIGHT & WONDER, INC. AND
SUBSIDIARIES
RECONCILIATION OF CONSOLIDATED
AEBITDA, SUPPLEMENTAL BUSINESS SEGMENT DATA AND RECONCILIATION OF
CONSOLIDATED AEBITDA MARGIN
(Unaudited, in
millions)
Three Months Ended
March 31,
2024
2023
Reconciliation of
Net Income Attributable to L&W to Consolidated
AEBITDA
Net income attributable to L&W
$
82
$
22
Net income attributable to noncontrolling
interest
—
5
Net income
82
27
Restructuring and other(1)
6
19
Depreciation, amortization and
impairments
86
101
Other (income) expense, net
(8
)
2
Interest expense
75
75
Income tax expense (benefit)
18
(1
)
Stock-based compensation
22
26
Consolidated AEBITDA
$
281
$
249
Supplemental
Business Segment Data
Business segments AEBITDA
Gaming
$
232
$
206
SciPlay
62
54
iGaming
25
23
Total business segments AEBITDA
319
283
Corporate and other(2)
(38
)
(34
)
Consolidated AEBITDA
$
281
$
249
Reconciliation to
Consolidated AEBITDA Margin
Consolidated AEBITDA
$
281
$
249
Revenue
756
670
Net income margin
11
%
4
%
Consolidated AEBITDA margin (Consolidated
AEBITDA/Revenue)
37
%
37
%
(1) Refer to the Consolidated AEBITDA
definition below for a description of items included in
restructuring and other.
(2) Includes amounts not allocated to the
business segments (including corporate costs) and other
non-operating expenses (income).
LIGHT & WONDER, INC. AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME
ATTRIBUTABLE TO L&W TO ADJUSTED NPATA
(Unaudited, in
millions)
Three Months Ended
March 31,
2024
2023
Reconciliation of
Net Income Attributable to L&W to Adjusted NPATA
Net income attributable to L&W
$
82
$
22
Net income attributable to noncontrolling
interest
—
5
Net income
82
27
Amortization of acquired intangibles and
impairments
31
51
Restructuring and other(1)
6
19
Other (income) expense, net
(8
)
2
Income tax impact on adjustments
(6
)
(13
)
Adjusted NPATA
$
105
$
86
(1) Refer to the Adjusted NPATA definition
below for a description of items included in restructuring and
other.
LIGHT & WONDER, INC. AND
SUBSIDIARIES
SUPPLEMENTAL INFORMATION -
SEGMENT KEY PERFORMANCE INDICATORS AND SUPPLEMENTAL FINANCIAL
DATA
(Unaudited, in millions,
except unit and per unit data or as otherwise noted)
Three Months Ended
March 31,
March 31,
December 31,
2024
2023
2023
Gaming Business
Segment Supplemental Financial Data:
Revenue by Line of
Business:
Gaming operations
$
164
$
160
$
168
Gaming machine sales
205
158
205
Gaming systems
60
55
71
Table products
47
46
52
Total revenue
$
476
$
419
$
496
Gaming
Operations:
U.S. and Canada:
Installed base at period end
31,534
30,675
31,220
Average daily revenue per unit(1)
$
48.82
$
46.72
$
47.91
International:(2)
Installed base at period end
22,163
26,220
22,327
Average daily revenue per unit
$
14.28
$
14.19
$
16.01
Gaming Machine
Sales:
U.S. and Canada new unit shipments
4,437
4,057
4,783
International new unit shipments
5,259
3,621
7,340
Total new unit shipments
9,696
7,678
12,123
Average sales price per new unit
$
19,897
$
18,748
$
15,477
Gaming Machine Unit
Sales Components:
U.S. and Canada unit shipments:
Replacement units
4,296
3,760
4,451
Casino opening and expansion units
141
297
332
Total unit shipments
4,437
4,057
4,783
International unit shipments:
Replacement units
3,711
2,210
7,270
Casino opening and expansion units
1,548
1,411
70
Total unit shipments
5,259
3,621
7,340
SciPlay Business
Segment Supplemental Financial Data:
Revenue by
Platform:
Mobile in-app purchases
$
170
$
166
$
172
Web in-app purchases and other(3)
36
21
32
Total revenue
$
206
$
186
$
204
In-App
Purchases:
Mobile penetration(4)
84
%
91
%
86
%
Average MAU(5)
5.8
6.1
5.5
Average DAU(6)
2.2
2.3
2.2
ARPDAU(7)
$
1.01
$
0.89
$
1.00
Average MPU(8) (in thousands)
594
625
587
AMRPPU(9)
$
113.93
$
97.43
$
113.73
Payer Conversion Rate(10)
10.2
%
10.3
%
10.7
%
iGaming Business
Segment Supplemental Data:
Wagers processed through Open Gaming
System (in billions)
$
22.4
$
20.3
$
21.6
(1) We refined U.S. and Canada units
average daily revenue per unit calculation to include certain
Gaming operations revenue streams that were previously excluded and
have revised prior periods to align with the new calculation. The
change aligns more closely with how Management evaluates the
operating performance and was immaterial both quantitatively and
qualitatively.
(2) Units exclude those related to game
content licensing.
(3) Other represents $12 million in
revenue generated via our proprietary platform during the three
months ended March 31, 2024, along with advertising and other
revenue, which were not material for the periods presented.
(4) Mobile penetration is defined as the
percentage of SciPlay revenue generated from mobile platforms.
(5) MAU = Monthly Active Users is a count
of visitors to our sites during a month. An individual who plays
multiple games or from multiple devices may, in certain
circumstances, be counted more than once. However, we use
third-party data to limit the occurrence of multiple counting.
(6) DAU = Daily Active Users is a count of
visitors to our sites during a day. An individual who plays
multiple games or from multiple devices may, in certain
circumstances, be counted more than once. However, we use
third-party data to limit the occurrence of multiple counting.
(7) ARPDAU = Average Revenue Per DAU is
calculated by dividing revenue for a period by the DAU for the
period by the number of days for the period.
(8) MPU = Monthly Paying Users is the
number of individual users who made an in-game purchase during a
particular month.
(9) AMRPPU = Average Monthly Revenue Per
Paying User is calculated by dividing average monthly revenue by
average MPUs for the applicable time period.
(10) Payer conversion rate is calculated
by dividing average MPU for the period by the average MAU for the
same period.
LIGHT & WONDER, INC. AND
SUBSIDIARIES
RECONCILIATION OF NET INCOME
ATTRIBUTABLE TO L&W TO CONSOLIDATED AEBITDA AND PRINCIPAL FACE
VALUE OF DEBT OUTSTANDING TO NET DEBT AND NET DEBT LEVERAGE
RATIO
(Unaudited, in millions,
except for ratio)
Twelve Months Ended
March 31, 2024
December 31, 2023
Net income attributable to L&W
$
223
$
163
Net income attributable to noncontrolling
interest
11
17
Net income
234
180
Restructuring and other
79
92
Depreciation, amortization and
impairments
369
384
Other income, net
(15
)
(5
)
Interest expense
309
309
Income tax expense
45
25
Stock-based compensation
114
118
Loss on debt financing transactions
15
15
Consolidated AEBITDA
$
1,150
$
1,118
As of
March 31, 2024
December 31, 2023
Consolidated AEBITDA
$
1,150
$
1,118
Total debt
$
3,874
$
3,874
Add: Unamortized debt discount/premium and
deferred financing costs, net
44
44
Less: Debt not requiring cash repayment
and other
—
(1
)
Principal face value of debt
outstanding
3,918
3,917
Less: Cash and cash equivalents
450
425
Net debt
$
3,468
$
3,492
Net debt leverage ratio
3.0
3.1
RECONCILIATION OF NET CASH
PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(Unaudited, in
millions)
Three Months Ended
March 31,
2024
2023
Net cash provided by operating
activities
$
171
$
185
Less: Capital expenditures
(66
)
(53
)
Less: Payments on license obligations
(5
)
(12
)
Less: Change in restricted cash impacting
working capital
(7
)
(46
)
Free cash flow
$
93
$
74
Non-GAAP Financial Measures
Management uses the following non-GAAP financial measures in
conjunction with GAAP financial measures: Consolidated AEBITDA,
Consolidated AEBITDA margin, Free cash flow, Net debt, Net debt
leverage ratio and Adjusted NPATA (each, as described more fully
below). These non-GAAP financial measures are presented as
supplemental disclosures. They should not be considered in
isolation of, as a substitute for, or superior to, the financial
information prepared in accordance with GAAP, and should be read in
conjunction with the Company’s financial statements filed with the
SEC. The non-GAAP financial measures used by the Company may differ
from similarly titled measures presented by other companies.
Specifically, Management uses Consolidated AEBITDA to, among
other things: (i) monitor and evaluate the performance of the
Company’s operations; (ii) facilitate Management’s internal and
external comparisons of the Company’s consolidated historical
operating performance; and (iii) analyze and evaluate financial and
strategic planning decisions regarding future operating investments
and operating budgets.
In addition, Management uses Consolidated AEBITDA and
Consolidated AEBITDA margin to facilitate its external comparisons
of the Company’s consolidated results to the historical operating
performance of other companies that may have different capital
structures and debt levels.
Management uses Net debt and Net debt leverage ratio in
monitoring and evaluating the Company’s overall liquidity,
financial flexibility and leverage.
Following our ASX listing, Management introduced usage of
Adjusted NPATA, a non-GAAP financial measure, which is widely used
to measure the performance as well as a principal basis for
valuation of gaming and other companies listed on the ASX, and
which we present on a supplemental basis.
Management believes that these non-GAAP financial measures are
useful as they provide Management and investors with information
regarding the Company’s financial condition and operating
performance that is an integral part of Management’s reporting and
planning processes. In particular, Management believes that
Consolidated AEBITDA is helpful because this non-GAAP financial
measure eliminates the effects of restructuring, transaction,
integration or other items that Management believes are less
indicative of the ongoing underlying performance of the Company’s
operations (as more fully described below) and are better evaluated
separately. Management believes that Free cash flow provides useful
information regarding the Company’s liquidity and its ability to
service debt and fund investments.
Management also believes that Free cash flow is useful for
investors because it provides investors with important perspectives
on the cash available for debt repayment and other strategic
measures, after making necessary capital investments in property
and equipment, necessary license payments to support the ongoing
business operations and adjustments for changes in restricted cash
impacting working capital.
Management believes Adjusted NPATA is useful for investors
because it provides investors with additional perspective on
performance, as the measure eliminates the effects of amortization
of acquired intangible assets, restructuring, transaction,
integration, certain other items, and the income tax impact on such
adjustments, which Management believes are less indicative of the
ongoing underlying performance of operations and are better
evaluated separately. Adjusted NPATA is widely used to measure
performance of gaming and other companies listed on the ASX.
Consolidated AEBITDA
Consolidated AEBITDA, as used herein, is a non-GAAP financial
measure that is presented as a supplemental disclosure of the
Company’s operations and is reconciled to net income as the most
directly comparable GAAP measure, as set forth in the schedule
titled “Reconciliation of Net Income Attributable to L&W to
Consolidated AEBITDA.” Consolidated AEBITDA should not be
considered in isolation of, as a substitute for, or superior to,
the consolidated financial information prepared in accordance with
GAAP, and should be read in conjunction with the Company's
financial statements filed with the SEC. Consolidated AEBITDA may
differ from similarly titled measures presented by other
companies.
Consolidated AEBITDA is reconciled to Net income attributable to
L&W and includes the following adjustments, as applicable: (1)
Net income attributable to noncontrolling interest; (2)
Restructuring and other, which includes charges or expenses
attributable to: (i) employee severance; (ii) Management
restructuring and related costs; (iii) restructuring and
integration (including costs associated with strategic review,
rebranding, divestitures, SciPlay acquisition and ongoing
separation activities and related activities); (iv) cost savings
initiatives; (v) major litigation; and (vi) acquisition- and
disposition-related costs and other unusual items; (3)
Depreciation, amortization and impairment charges and Goodwill
impairments; (4) Loss on debt financing transactions; (5) Change in
fair value of investments and Gain on remeasurement of debt and
other; (6) Interest expense; (7) Income tax expense (benefit); (8)
Stock-based compensation; and (9) Other (income) expense, net,
including foreign currency gains or losses and earnings from equity
investments. AEBITDA is presented exclusively as our segment
measure of profit or loss.
Consolidated AEBITDA Margin
Consolidated AEBITDA margin, as used herein, represents our
Consolidated AEBITDA (as defined above) calculated as a percentage
of consolidated revenue. Consolidated AEBITDA margin is a non-GAAP
financial measure that is presented as a supplemental disclosure
for illustrative purposes only and is reconciled to net income, the
most directly comparable GAAP measure, in a schedule above.
Adjusted NPATA
Adjusted NPATA, as used herein, is a non-GAAP financial measure
that is presented as a supplemental disclosure of the Company’s
operations and is reconciled to net income as the most directly
comparable GAAP measure, as set forth in the schedule titled
“Reconciliation of Net Income Attributable to L&W to Adjusted
NPATA.” Adjusted NPATA should not be considered in isolation of, as
a substitute for, or superior to, the consolidated financial
information prepared in accordance with GAAP, and should be read in
conjunction with the Company's financial statements filed with the
SEC. Adjusted NPATA may differ from similarly titled measures
presented by other companies.
Adjusted NPATA is reconciled to Net income and includes the
following adjustments, as applicable: (1) Amortization of acquired
intangible assets; (2) Non-cash asset and goodwill impairments; (3)
Restructuring and other, which includes charges or expenses
attributable to: (i) employee severance; (ii) Management
restructuring and related costs; (iii) restructuring and
integration (including costs associated with strategic review,
rebranding, divestitures and ongoing separation activities and
related activities); (iv) cost savings initiatives; (v) major
litigation; and (vi) acquisition- and disposition-related costs and
other unusual items; (4) Loss on debt financing transactions; (5)
Change in fair value of investments and Gain on remeasurement of
debt and other; (6) Income tax impact on adjustments; and (7) Other
(income) expense, net, including foreign currency gains or losses
and earnings from equity investments.
Free Cash Flow
Free cash flow, as used herein, represents net cash provided by
operating activities less total capital expenditures, less payments
on license obligations, plus payments on contingent acquisition
considerations and adjusted for changes in restricted cash
impacting working capital. Free cash flow is a non-GAAP financial
measure that is presented as a supplemental disclosure for
illustrative purposes only and is reconciled to net cash provided
by operating activities, the most directly comparable GAAP measure,
in the schedule above.
Net Debt and Net Debt Leverage Ratio
Net debt is defined as total principal face value of debt
outstanding, the most directly comparable GAAP measure, less cash
and cash equivalents. Principal face value of debt outstanding
includes the face value of debt issued under Senior Secured Credit
Facilities and Senior Notes, which are described in Note 15 of the
Company's Annual Report on Form 10-K for the year ended December
31, 2023, and in Note 10 of the Company’s Quarterly Report on Form
10-Q for the quarter ended March 31, 2024, but it does not include
other long-term obligations primarily comprised of certain revenue
transactions presented as debt in accordance with ASC 470. Net debt
leverage ratio, as used herein, represents Net debt divided by
Consolidated AEBITDA. The forward-looking non-GAAP financial
measure targeted net debt leverage ratio is presented on a
supplemental basis and does not reflect Company guidance. We are
not providing a forward-looking quantitative reconciliation of
targeted net debt leverage ratio to the most directly comparable
GAAP measure because we are unable to predict with reasonable
certainty the ultimate outcome of certain significant items without
unreasonable effort. These items are uncertain, depend on various
factors, and could have a material impact on GAAP reported results
for the relevant period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240508506408/en/
Media Relations Andy Fouché +1 206-697-3678 Vice
President, Corporate Communications media@lnw.com
Investor Relations Nick Zangari +1 702-301-4378 Senior
Vice President, Investor Relations ir@lnw.com
Grafico Azioni Light and Wonder (NASDAQ:LNW)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Light and Wonder (NASDAQ:LNW)
Storico
Da Dic 2023 a Dic 2024