Light & Wonder today reported results for the first quarter, ending March 31, 2023.
In the first three months of 2023, the global gaming software supplier saw its consolidated revenues rise by 17%, reaching $670 million. When compared to the first quarter of 2022, the company saw strong growth across all business segments helping drive a return to profitability.
Matt Wilson, president and CEO of Light & Wonder, said via the company’s press release: “We’re off to a strong start in 2023, delivering on all key metrics and once again driving double-digit revenue growth across all three of our businesses.
Our strategy and disciplined investments are driving enhanced returns as we continue to develop and execute on our robust product roadmap, building off the strong momentum that we saw in 2022.”
The company also emphasized a year-over-year increase in revenue.
A strong first quarter of 2023
Light & Wonder is confident and off to a strong start in 2023 as it posts growth in both revenue and net income.
Q1 highlights include:
- Consolidated revenue of $670 million compares to $572 million recorded in Q1 of 2022. That’s a 17% YOY increase.
- Net income of $27 million compares to a net loss of $67 million in the prior year period. It’s a result of higher revenue and operating income and lower interest expense in the current period.
- Consolidated EBITDA was $249 million. That’s a 23% increase from the $202 million recorded in Q1 last year.
- Net cash provided by operating activities was $185 million. The figure compares to $94 million last year.
According to a Business Wire press release, Connie James, Chief Financial Officer of Light & Wonder also commented:
“We continue to capitalize on the strong growth opportunities that we see in our markets and drive margin enhancement across the business as we remain focused on operational excellence.
This quarter demonstrates Light & Wonder’s favorable financial profile with strong topline growth flowing to the bottom line, and importantly strong cash conversion, enabling us to invest in future sustainable growth.
We continue to focus on generating significant cash flow while maintaining our balanced and opportunistic approach to capital management and a healthy balance sheet to enhance value for our shareholders.”
Social casino business grows by 18% year-over-year
Light & Wonder’s gaming revenue increased 18% year-over-year reaching $419 million compared to the prior year. Gaming machine sales mostly drove the success and also rose by 53%.
SciPlay achieved revenue of $186 million, an 18% growth compared to the same period last year. The success is attributed to its core social casino business, which delivered strong payer metrics, outpaced the market, and gained market share.
The company’s online gaming revenue also increased by 10% reaching $65 million, driven by the continued US market growth.
Wilson concluded in the press release: “The teams executed several notable wins and key launches in the quarter, and we have a full pipeline of games that support progress toward our long-term targets. With leading talent, technology and products, we continue to strengthen our position as the leading cross-platform global games company.”