First-quarter sales for Light & Wonder in 2025 saw a 2% rise in revenue.
Hitting the Jackpot: Light & Wonder, Inc.'s Financial Report for Q1 2025 Restates 16 Consecutive Quarters of Growth
Vegas-based gaming titan, Light & Wonder, Inc., has released its Q1 2025 financials, extending its remarkable streak of 16 consecutive quarters of year-over-year growth. The company recorded a 2% bump in consolidated revenue, reaching a total of $774 million compared to Q1 2024.
The adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) shot up by 11%, hitting $311 million. Despite a minor 3% decline in consolidated revenue compared to Q4 2024, adjusted EBITDA enjoyed a slight 1% increase.
Light & Wonder's core gaming segment experienced a 4% revenue surge, reaching an impressive $495 million, with table products zooming up 9%, while gaming systems and gaming operations grew 5% apiece.
iGaming Thrives, While SciPlay Slightly Dips
The iGaming sector continued its upward trend, recording a 4% increase in revenue, totaling $77 million. This impressive performance is attributed to a strengthening U.S. market and an expanding partner network. In contrast, the social gaming segment, SciPlay, saw a 2% downturn, racking up a quarterly revenue of $202 million.
Court Battles and Tariff Woes
The report also addressed two significant challenges: the ongoing legal squabble with rival Aristocrat and the impact of U.S. tariffs on the company's supply chain.
Light & Wonder disclosed that independent experts have examined all Hold & Spin games released since 2015. Besides the Dragon Train and Jewel of the Dragon titles, no other games were found to employ Aristocrat's proprietary mathematical values.
Regarding trade tariffs, the company reported that certain materials and components used in its products hail from China and other Asian regions. To counterbalance the impact, the company is introducing measures such as supplier diversification, supply chain adjustment, cost control, and price renegotiation.
Despite looming cost pressures, the company is confident its ongoing operational efficiency efforts will offset these effects, as it remains committed to hitting $1.4 billion in consolidated adjusted EBITDA by the end of 2025.
Steady Performance in Net Income
The company's net income remained stagnant at $82 million for the quarter, or $0.94 per share - the same figure as the same period in 2024. Nevertheless, the quarterly profits bested the $0.76 per share consensus estimate of Zacks, indicating better-than-anticipated performance.
CEO's Statement: Full Steam Ahead
Light & Wonder's President and CEO, Matt Wilson, expressed optimism, stating that the company's R&D investments, varied product offerings, and omnichannel content strategy are catalysts for growth.
Wilson stated, "We carry on with unwavering confidence in the myriad growth avenues we envision for 2025, with steady execution of our solid product development plan driving results across the company. We are resolved on advancing with our top-notch talent and diverse portfolio of games to ensure long-term success."
He also spotted future opportunities, including the acquisition of Grover Charitable Gaming, as critical stepping-stones to expand the business throughout 2025.
Q4 2024: A Strong Finish
The company had already demonstrated solid performance in Q4 2024, notching its 15th consecutive quarter of annual consolidated revenue growth. During this period, revenue surged 4% to reach $797 million, with consolidated adjusted EBITDA also advancing 4% compared to the previous year, totaling $315 million.
Revenue from Light & Wonder's gaming segment soared 4% compared to the same period last year, reaching $515 million. Growth was majorly driven by gaming systems and table products, with gaming systems revenue skyrocketing 24% to $88 million, and table products increasing 10% to $57 million.
SiGMA Asia: The Gaming Sector's Epic Gathering
The world's prominent iGaming community is set to assemble at SiGMA Asia from June 1 to 4, 2025. Manila, the epicenter of Asia's gaming industry, will host the event, promising to redefine the sector's landscape. SiGMA Asia is the rendezvous point for industry heavyweights. Don't miss it!
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The financial report for Q1 2025 by Light & Wonder, Inc. showcases their continued growth in the business and technology sectors, with a 2% bump in consolidated revenue, reaching $774 million. The company's iGaming sector, a significant part of their technology-driven growth, increased by 4%, totaling $77 million.
Despite a minor decline in consolidated revenue compared to Q4 2024, Light & Wonder's prosperous financial performance extended its remarkable streak of 16 consecutive quarters of year-over-year growth, as adjusted EBITDA shot up by 11%, reaching $311 million.
