Light & Wonder (LNW) Q2 2024 earnings summary

Executive summary

• Achieved 13 consecutive quarters of consolidated revenue growth, with Q2 2024 revenue up 12% year-over-year to $818 million, driven by strong performance across all business segments.

• Net income rose to $82 million from $5 million in Q2 2023, reflecting higher revenue, strong margins, and lower depreciation and amortization, partially offset by a $32 million legal charge.

• Completed $750 million share repurchase program, returning $175 million to shareholders in H1 2024, and launched a new $1 billion buyback program.

• Added to the Russell 1000 Index and marked one-year anniversary on the ASX, reflecting market confidence.

• Maintained a robust product roadmap and effective execution, fueling sustainable growth.

Financial highlights

• Q2 2024 consolidated revenue: $818 million (+12% year-over-year); H1 2024 revenue: $1.6 billion (+13%).

• Q2 net income: $82 million (vs. $5 million prior year); H1 net income: $164 million (vs. $32 million prior year).

• Q2 consolidated AEBITDA: $330 million (+17%); H1 AEBITDA: $610 million (+15%).

• Adjusted NPATA for Q2: $130 million (+40%); H1: $234 million (+31%).

• Free cash flow for Q2: $70 million (vs. $24 million prior year); H1: $162 million (vs. $98 million prior year).

Outlook and guidance

• Confident in achieving $1.4 billion AEBITDA target for 2025, requiring an 11% run rate from current levels.

• No anticipated earnings cliff in 2025; business set up for continued growth beyond that year.

• Management expects continued value creation through enhanced cash flow generation and execution on long-term financial targets.

• Ongoing investments in original content and digital platforms are expected to drive further revenue and margin expansion.

• Expect continued elevated capital expenditures and incremental investment in user acquisition in the second half.