First-quarter earnings of Light & Wonder show a 2% revenue increase in the year 2025.
Light ‘n' Wonder Rocks Q1 of 2025 with a 16th Back-to-Back Profit Boost
Vegas-based gaming tech titan, Light 'n' Wonder, has belted out their financial results for Q1 2025, marking the 16th quarter in a row of year-over-year growth. The crew announced a 2% jump in consolidated revenue, storming to a whopping $774 million compared to the same period in '24.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) saw a massive 11% surge year-over-year, reaching an impressive $311 million. However, there was a slight drop compared to the previous quarter, with consolidated revenue and adjusted EBITDA suffering a 3% and 1% decrease respectively.
The core gaming segment escalated its annual revenue by a cool 4%, reaching $495 million. Table products scored a 9% hike, while gaming systems and gaming operations both experienced a 5% increase.
iGaming Keeps Growing, While SciPlay Takes a Small Hit
The iGaming division held onto its growth wave, posting a 4% revenue increase to $77 million. The gains reflect the strengthening U.S. market and expansion of the company’s partner network. On the other hand, the social gaming segment, SciPlay, suffered a 2% decline in revenue, hitting a quarterly total of $202 million.
The Legal Battle with Aristocrat and Tariff Battle
The quarterly report dipped into the ongoing legal battle with competitor Aristocrat and the impact of U.S. trade tariffs on the company’s supply chain. Light 'n' Wonder spilled the beans that experts have analyzed all Hold & Spin games released since 2015. The findings revealed that, apart from the Dragon Train and Jewel of the Dragon titles, no other games used Aristocrat's proprietary mathematical values.
Regarding tariffs, the company acknowledged that some materials and components come from China and other Asian regions. To dodge the bullet, they’re implementing a series of measures, including diversifying suppliers, reshaping the supply chain, cost control, and price renegotiations.
Despite possible cost pressures, the company upholds its aim of snagging $1.4 billion in consolidated adjusted EBITDA by year-end '25.
Steady as She Goes with Net Income
The company's net income remained stable at $82 million for the quarter, or $0.94 per share – the same figure as in the same period last year. However, the quarterly profits surpassed the $0.76 per share consensus estimate of Zacks, indicating a better-than-expected performance.
CEO Matty W on Full Steam Ahead
Light 'n' Wonder’s big kahuna, CEO Matty W, declared that the company's investments in tech, product variety, and an omnichannel content strategy remain key drivers of continued growth.
Wilson proclaimed, "We’re stoked about our robust product development plan, which is firing on all cylinders across the company. We’re rock-solid confident in the multiple growth avenues we reckon we've got cooking for '25, with acquisitions like Grover Charitable Gaming set to beef up our portfolio even more."
Q4 '24 Brings Further Success
Light 'n' Wonder already made some noise in Q4 '24 with its 15th straight quarter of annual consolidated revenue growth, with revenue soaring 4% to hit $797 million. Consolidated adjusted EBITDA also saw a 4% rise compared to the same period last year, totaling $315 million.
Revenue from the gaming segment surged 4% to reach $515 million, driven mainly by gaming systems and table products. Gaming systems revenue leaped 24% to $88 million, while table products averaged a 10% increase to $57 million.
The Gaming World Convenes at SiGMA Asia
SiGMA Asia, happening from June 1 to 4, 2025 in Manila, is miles ahead the global hub for the gaming world. Get ready for a breath-taking experience as the world’s biggest iGaming community comes together, elevating the sector to unparalleled heights. Don't miss out!
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- Despite the slight decrease in consolidated revenue and adjusted EBITDA compared to the previous quarter, Light 'n' Wonder aims to achieve $1.4 billion in consolidated adjusted EBITDA by the end of 2025.
- The iGaming division of Light 'n' Wonder posted a 4% revenue increase, reaching $77 million, while the social gaming segment, SciPlay, suffered a 2% decline in revenue, amounting to $202 million for the quarter.
- In the ongoing legal battle with Aristocrat, experts analyzed all Hold & Spin games released since 2015 by Light 'n' Wonder. The findings revealed that apart from the Dragon Train and Jewel of the Dragon titles, no other games used Aristocrat's proprietary mathematical values.
- The gaming world will gather at SiGMA Asia from June 1 to 4, 2025, in Manila, as it serves as the global hub for the gaming sector, aiming to elevate the industry to unprecedented heights.