L&W posts full-year growth, rules out “unregulated” sweeps
Light & Wonder (L&W) has reported a remarkable growth trajectory in its full-year 2024 results, primarily driven by robust machine sales and successes within its social casino game unit, SciPlay.
For the fiscal year ending December 31, L&W achieved a revenue of $3.19 billion (£2.63 billion/€3.83 billion), marking a 9.7% increase from the previous year’s revenue of $2.90 billion.
The earnings report revealed a net income of $336 million, up a staggering 86.7% year-on-year compared to $180 million, while the adjusted EBITDA climbed by 11% to reach $1.24 billion for 2024.
L&W’s gaming revenue surged by 12% to $2.07 billion, propelled by machine sales which expanded by 22%, reflecting strategic market share gains across North America and Australia.
In addition, its publisher and development arm, SciPlay, experienced a revenue increase of 6% over the last year, totaling $821 million. Despite being the smallest segment of the company, iGaming also saw a 9% growth during this period, generating $299 million.
Machine Sales and Regulated Games
The gaming manufacturer highlighted that global game sales shipments rose by 16% in 2024, with the company dispatching a total of 43,600 units worldwide. North America saw a notable rise, receiving 6,000 units—an increase of 25% compared to the previous year.
L&W’s CEO, Matt Wilson, articulated that, “The gaming machine sales share gains in North America and Australia this year exemplify our commitment to R&D investment, a well-defined commercial strategy, and a strong product roadmap.”
Wilson elaborated on L&W’s initiatives to realign studio operations, emphasizing the addition of experienced talent and the expansion of existing studios as part of an overarching strategy.
During the earnings call on February 25, Wilson addressed potential growth avenues, specifically mentioning the company’s scrutiny of sweepstakes gambling within the U.S. market. He indicated that L&W views sweeps as unregulated at this time, which conflicts with the company’s strategic vision. However, he acknowledged that should regulation and taxation be established, L&W remains open to exploring sweepstakes game development.
Nevertheless, Wilson opined, “We do not anticipate this regulatory evolution occurring soon. In fact, we foresee a potential tightening of regulations, as several state attorneys general are actively issuing cease-and-desist orders against switchback operators.”
Despite reservations about sweepstakes, L&W is keen to diversify into new verticals, notably with its acquisition of Grover Gaming’s charitable gaming assets earlier this month. This strategic move involved an upfront payment of $850 million, supplemented by a contingent earn-out structure valued at up to $200 million over four years.
Wilson remarked that this acquisition would enhance the group’s “cross-platform strategy” and solidify its footing in land-based regulated markets.
Supply Chain Challenges and Brazilian Market Aspirations
In addressing potential challenges within supply chains, L&W informed investors that considerable efforts have been made over the past few years to diversify its sourcing strategies.
“Considering the tariffs impacting supplies from regions like China, Mexico, and Canada, we estimate this will present only a single-digit million-dollar impact for us,” stated CEO Wilson, emphasizing the company’s strategy to navigate these hurdles throughout the year.
Looking ahead, L&W expressed enthusiasm about the emerging Brazilian market, where the company aims to establish a strong presence. Wilson conveyed that L&W intends to invest significant resources to tailor offerings that resonate with local players, stating, “We are currently undertaking the necessary work to ensure our content aligns perfectly with the preferences of the Brazilian gaming audience.”
He added, “We find it intriguing to observe how the market dynamics play out with its recent legalization, and now we are equipped with various data points to effectively optimize our portfolio moving forward.”
