Light & Wonder Inc (LNW) Q1 2025 Earnings Call Highlights: Strong EBITDA Growth Amid Market ...

In This Article:

  • Revenue: $774 million, a 2% increase year-over-year.

  • Net Income: $82 million.

  • Diluted Net Income Per Share: $0.94, compared to $0.88 in the prior year period.

  • Consolidated EBITDA: $311 million, an 11% increase from the prior year.

  • EBITDA Margin: 40%, a 300 basis points increase over the prior year period.

  • Adjusted NPATA: $117 million, up 11% year-over-year.

  • Adjusted NPATA Per Share (EPSA): $1.35, a 21% increase from $1.12 in the prior year period.

  • Operating Cash Flow: $185 million, an 8% increase.

  • Free Cash Flow: $111 million, a 19% increase from the prior year.

  • Gaming Revenue: $495 million, a 4% increase year-over-year.

  • Gaming EBITDA: $254 million, a 9% increase with a 51% margin.

  • Gaming Operations Revenue: $173 million, a 5% increase year-over-year.

  • Global Gaming Machine Sales: $208 million, up 1% year-over-year.

  • Systems Revenue: $63 million, a 5% increase year-over-year.

  • Table Products Revenue: $51 million, a 9% increase year-over-year.

  • SciPlay Revenue: $202 million, with Quick Hit Slots and 88 Fortunes showing strong growth.

  • SciPlay EBITDA: $64 million, a 3% increase with a 32% margin.

  • iGaming Revenue: $77 million, a 4% increase year-over-year.

  • iGaming EBITDA: $27 million, an 8% increase year-over-year.

  • Share Repurchase: 1.9 million shares totaling $166 million.

Release Date: May 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Light & Wonder Inc (NASDAQ:LNW) achieved double-digit consolidated EBITDA growth, indicating strong financial performance.

  • The company added approximately 500 units to its North American installed base, contributing to a total of over 34,000 units.

  • Light & Wonder Inc (NASDAQ:LNW) maintained its position as the number one ship share supplier globally, with significant gains in the Australian market.

  • The company's SciPlay division outperformed the broader social casino market, with Quick Hit Slots achieving record revenue for 13 consecutive quarters.

  • Light & Wonder Inc (NASDAQ:LNW) reported a 19% increase in free cash flow, reflecting strong earnings and lower capital expenditures.

Negative Points

  • The company faced higher restructuring and other expenses, primarily related to pending acquisitions and discontinuation of live casino operations.

  • Weather-related issues in the Northeast impacted the average revenue per day for North American gaming operations.

  • International gaming business experienced a decline in installed base and unit sales, attributed to lease-to-sale conversions in the LatAm region.

  • Tariff uncertainties pose potential challenges to the supply chain and cost management.

  • Revenue growth has slowed in recent quarters, with a reliance on margin expansion to meet financial targets.