Both International Gaming Technology ($IGT) and Light & Wonder ($LNW) announced first-quarter earnings this week, each reporting drastically different results.
Regardless, both companies hold firm on the value of acquisition and the strength of the US online gambling market.
IGT posts strong Q1 results
Revenue rose 4% to $1.05 billion for IGT, while net income was $117 million or 39 cents a share. Both figures beat Wall Street forecasts of $1.04 billion and 28 cents per share.
As of writing, shares of $IGT were trading at $20.67.
IGT Chief Executive Officer Vince Sadusky told analysts during the call:
“We’ve invested heavily in key hardware and content initiatives over the last three years and we are seeing the benefits in the success of recent launches. It sets us up very well for 2023 and beyond.”
During the three months ending March 31, IGT launched online casino games in West Virginia, expanding its portfolio to five US states and Ontario. Additionally, the Georgia Lottery launched its first progressive jackpot game in Q1.
Sales for iLottery increased 20% in the first quarter, including over 40% in North America.
“Today, all our US iLottery customers have successfully transitioned to our cloud-based ESM platform. We are rolling it out to international customers over the next 12 months.”
“With a current library of 130 games, IGT’s newly launched ESMs are performing stronger than ever based on their increased quality and complexity of gameplay.”
Speaking on the $174.1 million acquisition of iSoftBet, Sadusky said the purchase would help IGT simplify its entry into new markets.
“It also provides a robust data analytics platform that will help our customers make focused, strategic decisions on their game portfolios. We expect to launch iSoftBet content and the aggregation platform in the US and Canada in the second half of 2022 and to bring IGT’s proprietary content via iSoftBet’s platform in the European regulated markets in the same time frame.”
Light & Wonder begins Q1 with rocky start
Light & Wonder Chief Executive Barry Cottle said the company began 2022 with significant achievements and strong momentum across the business.
“With strong revenue growth of 26% in the quarter, we are delivering on our promises to create great content cross-platform while expanding in high-growth digital markets and enabling a seamless player experience.”
Formally Scientific Games, the newly named Light & Wonder ($LNW) reported a net loss of $67 million, translating to 72 cents per share, compared to a net loss of $88 million or 98 cents per share a year ago.
Gaming revenues increased 45% year-over-year to $355 million, driven by growth in gaming operations.
- Gaming – up 45.5% to $355 million
- SciPlay – up 4.6% to $158 million
- iGaming – up 1.7% to $59 million
The company reported revenue of $572 million, up from $453 million in the year prior. Additionally, the company spoke briefly about the acquisition of Alictus, a Turkey-based hyper-casual game studio.
The transaction will expand SciPlay’s business in the casual gaming market. The deal will also help diversify Light & Wonder’s revenue stream fulfilling its objective to be a diversified global game developer.
“With a reconstituted balance sheet, sustainable double-digit growth and strong cash generation, we now have the ability to significantly enhance shareholder value through a disciplined approach to capital allocation.”
Before publishing, shares of $LNW were hovering around $49.36.