Light & Wonder Inc (ASX: LNW) shares are trading lower on Thursday following the release of the group's second-quarter results for 2025.
At the time of writing, shares in the ASX 200 gaming stock are changing hands at $130.37 apiece, marking a 4.5% drop from yesterday's close.
For comparison, the All Ordinaries Index (ASX: XAO) is trading flat at the same time.
It appears that investors were underwhelmed with the company's results for the quarter.
Let's take a closer look at the details.
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What happened during the quarter for the ASX 200 gaming stock?
Total consolidated revenue of US$809 million dipped by 1% from the same time last year.
Both the company's Gaming and SciPlay divisions saw revenue decrease by 2%, whilst its iGaming unit fared better with a 9% rise to reach a new quarterly record.
Management pointed to cautious purchasing behaviour and delayed capital expenditure from some of its clients for an adverse impact on game sales.
Nevertheless, Light & Wonder delivered earnings growth and margin expansion across all its business segments.
Net income of US$95 million jumped 16% from the same time last year, and operating earnings (AEBITDA) of US$352 million also rose 7%.
Management attributed this outcome to improved operational efficiencies and disciplined cost management.
Revenue growth from its iGaming division also played a role, as did contributions from the recently acquired Grover business.
Meanwhile, Light & Wonder's Gaming division sold more than 9,000 new units globally.
The company notched up its 20th consecutive quarterly increase in premium installed base after adding 845 North American gaming operations units to its portfolio.
All up, net profit after tax and amortisation (NPATA) of US$252 million increased by 8% from the same time last year.
What else?
In an interesting development, the company's board of directors approved a move to delist Light & Wonder from the Nasdaq index in the US.
Instead, the group's sole primary listing is now set to be the ASX.
Management noted that this decision reflects the company's strategic focus on aligning its capital markets presence with its long-term growth plans and shareholder base.
The move is expected to be wrapped by the end of November.
President and Chief Executive Officer of Light & Wonder, Matt Wilson, said:
Following an extensive diligence process, I am excited to announce the Board's decision to transition to a sole ASX listing, which I believe will deliver tremendous shareholder value going forward. I have confidence in our strategy as we continue to execute to our long-term blueprint, which will continue to drive quality of earnings and sustainable value both operationally and financially.
ASX 200 gaming stock half-year performance
Light & Wonder also unveiled its performance for the first half of 2025.
Consolidated revenue of US$1.6 billion was in line with the previous year, whilst net income of US$177 million grew by nearly 8% from the previous year.
Adjusted NPATA of US$252 million and consolidated AEBITDA of US$663 million increased by similar amounts.
The company's share buyback program continued to tick along with Light & Wonder repurchasing 3.1 million shares during the first half of 2025, valued at about US$266 million.
Looking ahead
Moving forward, Light & Wonder is guiding AEBITDA to range between US$1.43 billion and US$1.47 billion in 2025, including contributions from its Grover acquisition.
Full-year adjusted NPATA for this ASX 200 gaming stock is projected to fall between US$550 million and US$575 million.
