US – Gaming recovery helps Light & Wonder to double-digit topline growthBy Phil - 2 March 2023
During 2022, Light & Wonder delivered double-digit topline growth of 17 per cent driven by a recovery in gaming now approaching pre-pandemic levels and record revenues for SciPlay and iGaming with strong momentum in the fourth quarter.
Gaming revenue increased to $438m, up 18 per cent compared to the prior year period, primarily driven by another quarter of robust gaming machine sales growth of 41 per cent and continued strong momentum in gaming operations, systems and tables.
SciPlay revenue rose to $182m, an 18 per cent increase from the prior year period, and highest quarterly revenue ever. iGaming revenue increased 15 per cent and AEBITDA grew 27 per cent from the prior year period reflecting continued growth momentum in the US market.
Matt Wilson, President and Chief Executive Officer of Light & Wonder, said: “2022 was a pivotal year for Light & Wonder. We delivered on an ambitious and transformative plan while driving operational success and double-digit growth in our business. We are excited about our future and see strong momentum continuing in the business in the year to come. Our industry leading talent, games and technology put us in a strong position to deliver on our product roadmap, capitalize on the enormous opportunities ahead and lead in the convergence of gaming.”
Connie James, Chief Financial Officer of Light & Wonder, added: “We are proud of the tremendous and rapid progress we have made over the past 18 months. We delivered quality earnings, setting the foundation for sustainable growth going forward as we continue to focus on delivering shareholder value.
“We also returned significant capital to our shareholders, totaling $413m since our share repurchase program was announced a year ago. We now have a strong balance sheet and clear roadmap to advance with discipline on our balanced and opportunistic capital allocation strategy and elevate Light & Wonder’s value proposition.”
In the fourth quarter, gaming revenue increased to $438m, up 18 per cent compared to the prior year period. Gaming operations revenue benefited from year-over-year growth in our North American installed base and elevated average daily revenue per unit, due to strong content performance and continued success of our KASCADA and MURAL cabinets. The company’s North American premium installed base has grown for the 10th consecutive quarter, representing 45 per cent of its total installed base mix. Additionally, the company continues to see positive momentum with the Kascada Dual Screen and LANDMARK 7000 cabinets, validating our continued investment in our R&D engine to drive our long-term growth.
SciPlay revenue was $182m in the fourth quarter, a 18 per cent increase from the prior year period, breaking another record by achieving the highest quarterly revenue ever. Growth was primarily driven by the core social casino business as well as the Alictus acquisition. iGaming revenue increased 15 per cent and AEBITDA grew 27 per cent from the prior year period with performance primarily reflected by continued growth momentum in the US market.