Having sold its sports betting business for $800m, Light & Wonder delivered double-digit topline growth of 20 per cent in its third quarter, driven by continued strong momentum across gaming and iGaming and record revenue at SciPlay.
The company generated revenues of $648m in the quarter although its income from operations fell to $20m from $100m last year. Income in the third quarter of 2021 did see however a $181m income tax benefit.
Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “With the sale of the Sports Betting business, we have rapidly delivered on our promise to transform our business and streamline our organization. We have a unique collection of assets that are powered by games, technology, and our amazing teams. Our strengthened balance sheet puts us in a great position to build on our momentum and capture the incredible opportunities in front of us. With a sharpened focus and clear roadmap to win, we are executing on our growth strategy to drive share gains.
“The results this quarter reflect the tangible progress we are making strategically, operationally, and financially as we delivered strong double-digit topline growth and saw clear momentum across all of our businesses. At the center of our Company are a robust R&D engine and world-class teams, and I want to congratulate our teams on their continued energy and focus. With our strategy in place and with operational momentum building, we have an unrivaled ability to leverage our leading industry positions, evergreen franchises, and unmatched platforms to drive sustainable growth and significant shareholder value.”
Connie James, Chief Financial Officer of Light & Wonder, added: “What we have achieved over the last 18 months has been truly transformational as we redefined our portfolio of businesses and strengthened our balance sheet and credit profile, all while executing on our strategy to drive sustainable differentiation and growth. We have made tangible progress each quarter against our priorities, and this consistent and rapid execution is becoming a hallmark of our organization.
“With the proceeds from our Lottery and Sports Betting divestitures, we’ve significantly bolstered our balance sheet, enabling us to achieve a net debt leverage ratio of 3.1x, now squarely in our targeted range. With this significant milestone, we are now advancing our capital allocation priorities of returning capital to shareholders and investing in growth. As we enter the next phase of our journey, we will continue to focus on operational excellence and generating strong cash flows. I have great confidence in our team as we look to create tremendous value in this exciting next chapter for Light & Wonder and work towards driving sustainable growth and competitive differentiation.”