Light & Wonder saw a year-on year increase in revenue in its 2022 financial year. Chief executive Matt Wilson called it a “pivotal 12 months” for the company.
In April, the group sold its lottery company to Brookfield Business Partners for $5.8bn. Endeavor also acquired its OpenBet betting platform and assets of loyalty and marketing software as well as technology provider House advantage.
Light & Wonder now operates in three core business segments: gaming and igaming, as well as social gaming with SciPlay.
Wilson took over as CEO/President on a full-time basis in Oct . He had previously served as interim CEO in August following the departure of Barry Cottle . Wilson stated that the new-look company is now in a “strong place” to explore growth opportunities in 2023.
Wilson stated that 2022 was a pivotal years for Light & Wonder. We delivered on an ambitious, transformative plan and drove operational success and double-digit business growth.
“We are optimistic about the future of the business and expect strong momentum to continue in the coming year. We are able to deliver on our product roadmap and take advantage of the huge opportunities ahead thanks to our industry-leading talent, games, and technology.
Fourth quarter
Analyzing Light & Wonder’s performance, beginning with the fourth quarter. Revenue in the three-months to 31 December was $682m (PS569m/EUR641m). This is an 18% increase over the previous year due to double-digit growth across all business sectors. This includes $466m in services revenue, and $216m from product sale.
Gaming was the main source of revenue for Q4, with this revenue increasing 18% to $438m. This is due to a 41% increase in gaming machine sales. The year-over-year increase in North American installed base as well as a higher average daily revenue per unit for gaming operations also helped to boost revenue.
SciPlay revenue increased 18% to $182m. This quarterly record was set by both the core social casino business and the Alictus acquisition.
Revenue from igaming increased 15% to $62m during Q4, partially offset by $4m of unfavourable effects of foreign-currency Translation due to the strengthening US dollar. This impacted revenue growth by seven percentage point.
Operating expenses were 1.0% higher at £583m, while financial expenses fell 23.2% or $73m to $73m. This means that pre-tax profit from continuing operations was $26m compared to a loss of $92m in 2021.
Light & Wonder paid $5m income tax after accounting for a $18m profit from discontinued operations and removing $9m profit from non-controlling interests. This left a net profit of $30m attributable Light & Wonder, which is 68.4% lower year-on-year. The adjusted EBTIDA was 23% lower at $265m.
Full year
The revenue for the year was $2.51bn. $1.80bn came from services, and $717m in product sales.
Gaming revenue increased 21% to $1.60bn while SciPlay revenue climbed 11% at $671m, and igaming revenue grew 6% to $240m.
Operating costs rose 9.6% to $2.24bn, while net finance expenses rose 7.9% to $436m. Pre-tax losses from continuing operations were $163m. However, this was less than the $294m loss in 2021.
Light & Wonder paid $13m tax, which leaves a net loss of $176m from continuing operations, compared to a $24m profit made at the end of last year.
The group reported a net profit of $3.70bn from discontinued operations. This includes a pretax gain of $4.93bn derived from the sale of lottery and sports betting companies.
This resulted, minus a $22m loss from non-controlling interests, in a net profit to Light & Wonder at $3.68bn. It was $371m less in the 2021 financial years. The adjusted earnings before interest tax, depreciation, amortization and amortisation for the entire year was also 15% higher at $913m.
Connie James, chief financial officer at Light & Wonder, said that she is proud of the rapid and significant progress made in the last 18 months. We delivered high-quality earnings and set the stage for future sustainable growth as we focus on shareholder value.
We also returned substantial capital to our shareholders, totaling $413m since the announcement of our share repurchase programme a year back. Now we have a solid balance sheet and a clear roadmap to move with discipline on Light & Wonder’s balanced and opportunistic Capital Allocation Strategy and raise Light & Wonder’s value proposition.
