Site icon Parliamo Di Videogiochi

Light & Wonder, Inc. Reports First Quarter 2023 Results

Delivered Consolidated Revenue Growth of 17% Year-Over-Year with Strong Cash Flows

Achieved Double-Digit Growth Across all Three of our Businesses with 18% Gaming Revenue Growth and Record Revenue in SciPlay and iGaming

Principal Face Value of Debt Outstanding(1) of $3.9 Billion Translating to Net Debt Leverage Ratio(2) to 3.1x, Squarely in Targeted Range

Board of Directors Approved Secondary Listing on the Australian Securities Exchange

LAS VEGAS–(BUSINESS WIRE)–Light & Wonder, Inc. (NASDAQ: LNW) (“Light & Wonder,” “L&W,” or the “Company”) today reported results for the first quarter ended March 31, 2023.

We entered 2023 with strong momentum and delivered another quarter of double-digit topline growth with strong cash flows continuing to execute on our strategic plan and progress toward our long-term financial targets. Consolidated revenue grew 17%, driven by growth across all of our businesses, including another quarter of record revenues for SciPlay and iGaming:

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “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 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.”

Connie James, Chief Financial Officer of Light & Wonder, added, “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.”

(1) Principal face value of debt outstanding represents outstanding principal value of debt balances that conforms to the presentation found in Note 11 to the Condensed Consolidated Financial Statements in our March 31, 2023 Form 10-Q.

(2) Represents a non-GAAP financial measure. Additional information on non-GAAP financial measures presented herein is available at the end of this release.

LEVERAGE, CAPITAL RETURN, AND STRATEGY UPDATE

SUMMARY RESULTS

Unless otherwise noted, amounts, percentages and discussion included below reflect the results of operations and financial condition of the Company’s continuing operations, which includes its Gaming, SciPlay and iGaming businesses. We have reflected our former Lottery business (disposed during the second quarter of 2022) and Sports Betting business (disposed during the third quarter of 2022) (collectively referred to as the “Divestitures”) as discontinued operations.

 

Three Months Ended March 31,

($ in millions)

2023

 

 

2022

 

Revenue

$

670

 

$

572

 

Net income (loss)

 

27

 

 

(67

)

Net cash provided by operating activities(2)

 

185

 

 

94

 

Capital expenditures

 

53

 

 

43

 

Non-GAAP Financial Measures

 

 

 

Consolidated AEBITDA(1)

$

249

 

$

202

 

Free cash flow(1)(2)

 

74

 

 

(11

)

 

 

 

 

 

As of

Balance Sheet Measures

March 31, 2023

 

December 31, 2022

Cash and cash equivalents

$

931

 

$

914

 

Total debt

 

3,890

 

 

3,894

 

Available liquidity(3)

 

1,819

 

 

1,802

 

 

 

 

 

(1) Represents a non-GAAP financial measure. Additional information on non-GAAP financial measures presented herein is available at the end of this release.

(2) For the three months ended March 31, 2022, these financial measures represent combined results inclusive of discontinued operations.

(3) Available liquidity is calculated as cash and cash equivalents plus remaining revolver capacity, including the SciPlay Revolver.

First Quarter 2023 Financial Highlights:

BUSINESS SEGMENT HIGHLIGHTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023

 

($ in millions)

Revenue

 

AEBITDA

 

AEBITDA Margin(2)(3)

 

2023

 

2022

 

$

 

%

 

2023

 

2022

 

$

 

%

 

2023

 

2022

 

PP Change(3)

Gaming

$

419

 

$

355

 

$

64

 

18

%

 

$

206

 

 

$

171

 

 

$

35

 

20

%

 

49

%

 

48

%

 

1

 

SciPlay

 

186

 

 

158

 

 

28

 

18

%

 

 

54

 

 

 

44

 

 

 

10

 

21

%

 

29

%

 

28

%

 

1

 

iGaming

 

65

 

 

59

 

 

6

 

10

%

 

 

23

 

 

 

21

 

 

 

2

 

10

%

 

35

%

 

36

%

 

(1

)

Corporate and other(4)

 

 

 

 

 

 

%

 

 

(34

)

 

 

(34

)

 

 

 

%

 

n/a

 

 

n/a

 

 

n/a

 

Total

$

670

 

$

572

 

$

98

 

17

%

 

$

249

 

 

$

202

 

 

$

47

 

23

%

 

37

%

 

35

%

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PP percentage points.

n/a not applicable.

 

(1) Represents a non-GAAP financial measure. Additional information on non-GAAP financial measures presented herein is available at the end of this release.

(2) Segment AEBITDA Margin is calculated as segment AEBITDA as a percentage of segment revenue.

(3) As calculations are made using whole dollar numbers, actual results may vary compared to calculations presented in this table.

(4) Includes amounts not allocated to the business segments (including corporate costs) and other non-operating expenses (income).

First Quarter 2023 Key Highlights

(1) Average Revenue Per Daily Active User.

(2) Average Monthly Revenue Per Paying User.

Earnings Conference Call

As previously announced, Light and Wonder executive leadership will host a conference call on Tuesday, May 9, 2023, at 4:30 p.m. EDT to review the Company’s first quarter results. To access the call live via a listen-only webcast and presentation, please visit explore.lnw.com/investors/ and click on the webcast link under the Events and Presentations section. To access the call by telephone, please dial: +1 (833) 470-1428 for U.S. or +1 (204) 525-0658 for International and ask to join the Light & Wonder call using conference ID: 348332. A replay of the webcast will be archived in the Investors section on www.lnw.com.

About Light & Wonder

Light & Wonder, Inc. (NASDAQ: LNW) is a global leader in cross-platform games and entertainment. The Company brings together approximately 6,000 employees from six continents to connect content between land-based and digital channels with unmatched technology and distribution. Guided by a culture that values daring teamwork and creativity, the Company builds new worlds of play, developing game experiences loved by players around the globe. Its OPENGAMING™ platform powers the largest digital-gaming network in the industry. The Company is committed to the highest standards of integrity, from promoting player responsibility to implementing sustainable practices. To learn more, visit www.lnw.com.

You can access our filings with the Securities Exchange Commission (“SEC”) through the SEC website at www.sec.gov or through our website, and we strongly encourage you to do so. We routinely post information that may be important to investors on our website at explore.lnw.com/investors/, and we use our website as a means of disclosing material information to the public in a broad, non-exclusionary manner for purposes of the SEC’s Regulation Fair Disclosure (Reg FD).

The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document, and shall not be deemed “filed” under the Securities Exchange Act of 1934, as amended.

All ® notices signify marks registered in the United States. © 2023 Light & Wonder, Inc. All Rights Reserved.

Forward-Looking Statements

In this press release, Light & Wonder makes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often be identified by the use of terminology such as “may,” “will,” “estimate,” “intend,” “plan,” “continue,” “believe,” “expect,” “anticipate,” “target,” “should,” “could,” “potential,” “opportunity,” “goal,” or similar terminology. These statements are based upon management’s current expectations, assumptions and estimates and are not guarantees of timing, future results or performance. Therefore, you should not rely on any of these forward-looking statements as predictions of future events. Actual results may differ materially from those contemplated in these statements due to a variety of risks and uncertainties and other factors, including, among other things:

Additional information regarding risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated in forward-looking statements is included from time to time in our filings with the SEC, including the Company’s current reports on Form 8-K, quarterly reports on Form 10-Q and its latest Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2022 on March 1, 2023 (including under the headings “Forward Looking Statements” and “Risk Factors”). Forward-looking statements speak only as of the date they are made and, except for our ongoing obligations under the U.S. federal securities laws, we undertake no and expressly disclaim any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.

You should also note that this press release may contain references to industry market data and certain industry forecasts. Industry market data and industry forecasts are obtained from publicly available information and industry publications. Industry publications generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of that information is not guaranteed. Although we believe industry information to be accurate, it is not independently verified by us and we do not make any representation as to the accuracy of that information. In general, we believe there is less publicly available information concerning the international gaming, social and digital gaming industries than the same industries in the U.S.

Due to rounding, certain numbers presented herein may not precisely recalculate.

LIGHT & WONDER, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in millions, except per share amounts)

 

 

 

 

 

Three Months Ended

 

March 31,

 

 

2023

 

 

 

2022

 

Revenue:

 

 

 

Services

$

477

 

 

$

431

 

Product sales

 

193

 

 

 

141

 

Total revenue

 

670

 

 

 

572

 

 

 

 

 

Operating expenses:

 

 

 

Cost of services(1)

 

108

 

 

 

90

 

Cost of product sales(1)

 

94

 

 

 

70

 

Selling, general and administrative

 

192

 

 

 

175

 

Research and development

 

54

 

 

 

53

 

Depreciation, amortization and impairments

 

101

 

 

 

108

 

Restructuring and other

 

19

 

 

 

36

 

Total operating expenses

 

568

 

 

 

532

 

Operating income

 

102

 

 

 

40

 

Other (expense) income:

 

 

 

Interest expense

 

(75

)

 

 

(116

)

Gain on remeasurement of debt and other

 

 

 

 

7

 

Other (expense) income, net

 

(1

)

 

 

5

 

Total other expense, net

 

(76

)

 

 

(104

)

Net income (loss) from continuing operations before income taxes

 

26

 

 

 

(64

)

Income tax benefit (expense)

 

1

 

 

 

(3

)

Net income (loss) from continuing operations

 

27

 

 

 

(67

)

Net income from discontinued operations, net of tax

 

 

 

 

95

 

Net income

 

27

 

 

 

28

 

Less: Net income attributable to noncontrolling interest

 

5

 

 

 

2

 

Net income attributable to L&W

$

22

 

 

$

26

 

 

 

 

 

Per Share – Basic:

 

 

 

Net income (loss) from continuing operations

$

0.24

 

 

$

(0.72

)

Net income from discontinued operations

 

 

 

 

0.98

 

Net income attributable to L&W

$

0.24

 

 

$

0.26

 

 

 

 

 

Per Share – Diluted:

 

 

 

Net income (loss) from continuing operations

$

0.23

 

 

$

(0.72

)

Net income from discontinued operations

 

 

 

 

0.98

 

Net income attributable to L&W

$

0.23

 

 

$

0.26

 

 

 

 

 

Weighted average number of shares used in per share calculations:

 

 

 

Basic shares

 

91

 

 

 

97

 

Diluted shares

 

93

 

 

 

97

 

 

 

 

 

(1) Excludes depreciation and amortization.

LIGHT & WONDER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions except for common shares outstanding)

 

 

 

 

 

March 31,

 

December 31,

 

2023

 

2022

Assets:

 

 

 

Cash and cash equivalents

$

931

 

$

914

Restricted cash

 

93

 

 

47

Receivables, net of allowance for credit losses of $38

 

458

 

 

455

Inventories

 

172

 

 

161

Prepaid expenses, deposits and other current assets

 

108

 

 

117

Total current assets

 

1,762

 

 

1,694

 

 

 

 

Restricted cash

 

6

 

 

6

Receivables, net of allowance for credit losses of $2

 

14

 

 

14

Property and equipment, net

 

214

 

 

204

Operating lease right-of-use assets

 

47

 

 

49

Goodwill

 

2,922

 

 

2,919

Intangible assets, net

 

743

 

 

797

Software, net

 

141

 

 

145

Deferred income taxes

 

112

 

 

114

Other assets

 

61

 

 

67

Total assets

$

6,022

 

$

6,009

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

Current portion of long-term debt

$

23

 

$

24

Accounts payable

 

189

 

 

154

Accrued liabilities

 

362

 

 

380

Income taxes payable

 

68

 

 

64

Total current liabilities

 

642

 

 

622

 

 

 

 

Deferred income taxes

 

71

 

 

87

Operating lease liabilities

 

35

 

 

37

Other long-term liabilities

 

223

 

 

232

Long-term debt, excluding current portion

 

3,867

 

 

3,870

Total stockholders’ equity(1)

 

1,184

 

 

1,161

Total liabilities and stockholders’ equity

$

6,022

 

$

6,009

 

 

 

 

(1) Includes $176 million and $171 million in noncontrolling interest as of March 31, 2023 and December 31, 2022, respectively.

Contacts

COMPANY CONTACTS

Media Relations
Andy Fouché +1 206-697-3678
Vice President, Corporate Communications
media@lnw.com

Investor Relations
Nick Zangari +1 702-532-7614
Senior Vice President, Investor Relations
ir@lnw.com

Read full story here

Fonte BUSINESS WIRE

Please enable JavaScript to view the comments powered by Disqus.
Exit mobile version