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Light & Wonder CEO On Full Year, Q4 Earnings: ‘2023 Was A Banner Year’

Written By Katarina Vojvodic on February 28, 2024 - Last Updated on March 4, 2024
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Digital gaming firm Light & Wonder (NASDAQ:LNW) reported financial results for the fourth quarter and fiscal year ending Dec. 31, 2023.

The company closed the year successfully, delivering its 11th consecutive quarter of consolidated revenue growth. Q4 2023 consolidated revenue grew 13%, thanks to solid performance across all businesses while maintaining strong margins in the Gaming, SciPlay and iGaming sectors.

Light & Wonder also announced that full-year consolidated revenue increased 16%, reaching $2.9 billion and delivering record results.

Light & Wonder reaches $770M in consolidated revenue in Q4 2023

For the fourth-quarter, Light & Wonder said consolidated revenue was $770 million compared to Q4 2022’s $682 million. The revenue figure represents a 5.34% increase from Light & Wonder’s Q3 2023 $731 million and is a 13% annual increase, driven by double-digit growth across all lines of business:

  • Gaming revenue increased to $496 million, representing a 13% growth, driven by another quarter of growth in Gaming machine sales, which went up 31% year-over-year
  • SciPlay revenue saw healthy growth, reaching $204 million, a 12% increase from the prior year period and another quarterly record
  • iGaming revenue increased nearly 13% to $70 million, reflecting continued growth in the US and internationally. As key growth drivers for iGaming, the company mentioned Pennsylvania, Michigan, Canada and the EU

The company generally acknowledged consolidated EBITDA of $302 million, a 14% annual increase compared to Q4 2022’s $265 million. The success was driven by double-digit growth and maintaining strong margins across all of the company’s businesses.

Because of higher revenue and operating income, Light & Wonder’s Q4 2023 net income was $67 million, three times more (or a 219% progress) than the $21 million net income generated in Q4 2022.

Light & Wonder delivered double-digit growth in all areas in 2023

As mentioned, looking at full-year results, Light & Wonder generated a total revenue of $2.9 billion. The figure compares to $2.5 billion in the prior year and represents a 16% annual increase.

The company’s net income (loss) reached $180 million for the year. It compares to the last year’s net loss of $176 million.

Consolidated EBITDA for 2023 reached $1.12 billion, a 22.5% rise compared to Q4 2023’s $914 million.

Light & Wonder said its net debt leverage ratio declined to 3.1x from 3.3x at the end of 2022, remaining within its targeted range of 2.5x to 3.5x.

Matt Wilson, president and CEO of Light & Wonder, said in a news release:

“2023 was a banner year for Light & Wonder. 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 capitalize 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. I want to congratulate our team on a successful year and know the best is yet to come.”

Speaking of strategic investments, in October 2023, Light & Wonder finalized the acquisition of its business partner SciPlay. The company then noted that it would buy out SciPlay’s remaining 17% equity interest at $22.95 a share. The 17% investment was completed for more than $420 million.

Moving forward, Oliver Chow, CFO of Light & Wonder, said the company 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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Katarina Vojvodic

Katarina Vojvodic is a lead writer for PlayUSA who lives in Toronto. Vojvodic provides coverage of the US gambling industry with a focus on US online casinos. Previously, she covered Ontario’s online gambling industry for PlayCanada.com. Vojvodic holds a master’s degree in journalism from the University of Belgrade. Outside working hours, she can be found near the water with her husband and their two kids.

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