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Light & Wonder (NASDAQ: LNW) Q1 2024 earnings were the 12th consecutive quarter of year-over-year revenue growth for the gaming manufacturer. Additionally, the first quarter was the sixth consecutive quarter of double-digit revenue growth across the board between SciPlay social casino games, iGaming, and retail games and systems.
The company is on a hot streak. Light & Wonder continues to build on the momentum from its double-digit growth in 2023. Light & Wonder is already seeing solid growth across the board with more expected for the rest of the year.
Key takeaways:
- Light & Wonder’s revenue growth continued for the 12th consecutive quarter.
- Sci-Play and iGaming revenue grew double digits from the first quarter last year.
- Elk Studios and Lightning Box content stand out for SciPlay.
- The company remains focused on any acquisitions that could fill the need for more game content.
Light & Wonder first quarter 2024 earnings
Light & Wonder’s overall first-quarter revenue was $756 million compared to $670 million a year ago. This is good for a 13% increase. It also marks the 12th consecutive quarter of year-over-year growth.
The company reported a net income of $82 million or 88 cents per share. This was a large increase from $22 million and 23 cents per share during the same period last year.
In a Light & Wonder news release, Chief Financial Officer of Light & Wonder Oliver Chow said:
“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.”
Each segment of the business chipped in towards the growth. Land-based gaming revenue increased 14% to $476 million. Growth in this segment was led by a 30% year-over-year increase in gaming machine sales.
Revenue from SciPlay revenue grew by 11% to $206 million. Light & Wonder’s iGaming revenue increased by 14% to a quarterly revenue record of $74 million.
SciPlay revenue reaches record levels pushed by social casino games
During the first quarter, SciPlay’s revenue grew to a quarterly revenue record of $206 million. This was an 11% increase from the same period last year.
According to Matt Wilson, president and chief executive officer of Light & Wonder, SciPlay saw an 11% share of the social casino market because of popular social casino titles such as:
- Jackpot Party
- Quick Hit Slots
- Gold Fish
- 88 Fortunes
He also noted that “average monthly revenue per paying user and average revenue per daily active user once again reached new highs.”
Sub-segments of each division aren’t broken out in the revenue reports. Wilson said that SciPlay’s direct-to-consumer was “approximately 6% of revenues” for the unit during the first quarter.
He later said this was just 1% of revenue last year and that the company has its eyes set on this growing to more than 20% in the future.
iGaming revenue continues to grow, hits quarterly revenue record in Q1 2024
Light & Wonder’s iGaming revenue increased 14% to $74 million. This was a quarterly revenue record for the segment. During the first quarter of 2023, the company generated $65 million in revenue.
The company touted online casino growth in North America as the catalyst for the revenue increase. Wilson said:
“Our OGS platform delivered record gross gaming revenue volumes in the U.S. and Canada as we saw year-over-year increases of 23% and 29%, respectively. This impressive growth was further accentuated with our content strategy and roadmap.”
He noted that ELK Studios and Lighting Box are performing above expectations. Both content companies were acquired before the company’s rebranding as Light & Wonder.
ELK Studios’ GGR (Gross Gaming Revenue) is up 34% compared to last year. Lighting Box had a record GGR for the quarter, increasing by 12%. Wilson sees this segment as a growth opportunity that will feature land-based games and unique content.
During the Light & Wonder’s Q1 2024 earnings call, he said:
“iGame is one of the fastest-growing segments in the gaming space as we continue to see within the U.S. market in the quarter. We will continue to expand our content portfolio and cross-launch our proven land-based and digital native games, along with enhanced capabilities and new features added to our existing offerings, rounding out our robust iGaming portfolio to capitalize on legalization opportunities in the future.”
The company will have to wait for US online casino expansion to reach some of its goals for revenue growth.
Light & Wonder’s land-based gaming revenue
Light & Wonder’s North American installed game base and average daily revenue per unit increased to $48.82. The increase comes from the number of premium games installed in casinos.
The number of these games in casinos grew for the 15th consecutive quarter. Premium games represent 49% of Light & Wonder’s total installed games.
The Dragon Train series of games is among the most popular on casino floors this year. Well-known themes such as Dancing Drums and Huff N Puff continue to do well for the company.
The Squid Game slot machine from Light & Wonder debuted at the Global Gaming Expo (G2E) last year. The highly anticipated game should be installed in casinos soon.
