The Light & Wonder Inc (ASX: LNW) share price is in focus today after the gaming technology company reported third quarter net income jumping 78% to $114 million and consolidated revenue up 3% to $841 million.
What did Light & Wonder report?
- Consolidated revenue increased 3% to $841 million for the quarter.
- Net income surged 78% to $114 million, with net income per share up 89% to $1.34.
- Consolidated AEBITDA rose 18% to $375 million.
- Adjusted NPATA climbed 25% to $153 million (EPSa up 35% to $1.81).
- Free cash flow jumped 64% year-on-year to $136 million.
- $111 million returned to shareholders through share buybacks, with share repurchases reaching over $1.5 billion since 2022.
What else do investors need to know?
Light & Wonder marked its 21st straight quarter of North American premium installed base growth, with over 2,800 additional gaming operations units added year-on-year and Grover Gaming contributing $40 million in revenue this quarter. The company's iGaming segment delivered record revenue, while SciPlay's direct-to-consumer revenue made up 20% of segment sales—showing momentum in digital.
During the quarter, the company extended its debt maturity by issuing $1 billion in senior notes due 2033 at a lower interest rate, while maintaining its full-year outlook. The transition to a sole primary listing on the ASX remains on-schedule, with more than half of shares now converted for ASX trading.
What did Light & Wonder management say?
Matt Wilson, President and Chief Executive Officer, said:
I want to thank all stakeholders for their continued support, as we work toward completion of our transition to a sole primary listing on the Australian Securities Exchange ('ASX'), where we've been listed since 2022. This move simplifies our listing structure for shareholders and further enhances Light & Wonder's profile within a Gaming-attuned Australian market. Our R&D engine continues to deliver world-class content, reflected in another strong quarter for Gaming operations and record iGaming performance. We are reinvesting in the business to drive long-term sustained growth, as evidenced by the number and quality of new games and hardware showcased at this year's G2E. Additionally, we are thrilled to report that the integration of Grover Gaming into our omni-channel strategy is progressing well. The team is fully prepared to participate in the opening of the Indiana charitable gaming market, expected in the coming months.
What's next for Light & Wonder?
The company reaffirmed its FY25 guidance, forecasting consolidated AEBITDA between $1.43 billion and $1.47 billion, and adjusted NPATA of $550–$575 million. Management plans to keep investing in new game content and hardware, with a focus on growing its digital and omni-channel presence—particularly with Grover and the iGaming platform.
The upcoming sole ASX listing is a strategic shift aimed at boosting its local market presence, and the company expects to continue its disciplined capital management, including the potential for further share buybacks while maintaining balance sheet flexibility.
Light & Wonder share price snapshot
Light & Wonder shares have declined 23% over the past 12 months, underperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
