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  • Q4 2023: Light & Wonder shares rally amid 13% revenue growth
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Shares in Light & Wonder are trading higher today (28 February) after the business announced revenue of $770m in Q4 2023, an increase of 12.9% year-on-year.

Q4 results breakdown

Of the revenue total, $496m came from the supplier’s core land-based Gaming segment, amid year-on-year growth of 13.2%.

The improved revenue in that segment was driven primarily by global gaming machine sales growth of 31%, L&W said, with improved performance in both the US and Australia.

The SciPlay social gaming segment also saw healthy year-on-year growth of 12.1%, as revenue there grew to $204m.

There, the company said it benefited from a combination of strong revenue growth and disciplined user acquisition spend, as its average revenue per daily average user improved 15% year-on-year to $1.

The segment also saw an improved payer conversion rate of 10.7% and record average monthly revenue per paying user of $113.73.

Elsewhere, revenue from L&W’s smaller iGaming segment was up by 12.9% to $70m during the quarter.

Revenue growth there was driven primarily by continued momentum in the US and internationally, L&W said, with Pennsylvania, Michigan, Canada and the EU all mentioned as key growth drivers for iGaming.

Overall, the business declared adjusted EBITDA of $302m, up 14% compared to the $265m generated in Q4 2022, as it maintained a consistent EBITDA margin of 39% across both quarters.

Net income for Q4 2023 was $67m, more than triple the $21m net income declared in Q4 2022.

Full-year results

Turning to the full-year 2023, L&W generated total revenue of $2.9bn, up 15.5% year-on-year.

Adjusted EBITDA for the year totalled $1.12bn, up 22.5% from $914m in 2022.

From its total revenue, the business declared a net income of $180m for the year. That represented a signifiant turnaround compared to the $176m net loss it declared for full-year 2022.

As of the end of the reporting period, the business held cash and cash equivalents of $425m.

Its total debt stood at $3.87bn, while the business had available liquidity of $1.17bn.

Its net debt leverage ratio of 3.1x was 0.2x lower than at the end of the previous year, and was comfortably within its targeted range of 2.5x-3.5x, L&W said.

“2023 was a banner year for Light & Wonder,” said president and CEO of L&W, Matt Wilson.

“Our businesses delivered double-digit growth across the board throughout the year, enabled by strategic investments and strong execution. We consistently leverage a differentiated product strategy and plan to capitalise on the significant growth opportunities ahead of us. 

“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.”

CFO Oliver Chow added: “We continue to see healthy trends in the business and were able to capitalise on many of the opportunities presented to us in 2023 to deliver strong top- and bottom-line growth, both in the quarter and for the full year. 

“Moving forward, we will focus on driving sustainable growth and executing against our balanced and opportunistic capital allocation strategy with discipline, driving value for all stakeholders.”

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