Light & Wonder (LNW) Q3 2024 earnings summary

Executive summary

• Achieved 12% year-over-year consolidated revenue growth to $817 million in Q3 2024, marking the 9th consecutive quarter of double-digit growth and strong performance across Gaming, SciPlay, and iGaming segments.

• Returned $44 million to shareholders via share repurchases in Q3 and maintained a healthy balance sheet.

• Added to the S&P/ASX 100 Index, reflecting increased visibility and rapid growth.

• Successfully mitigated the Dragon Train injunction, converting 95% of affected North American units, with minimal impact expected on 2025 revenue.

• Continued innovation and expansion of product portfolio, including new game launches, cabinets, and entry into new markets.

Financial highlights

• Q3 2024 consolidated revenue was $817 million, up 12% year-over-year; nine-month revenue reached $2.39 billion.

• Consolidated AEBITDA for Q3 2024 was $319 million (up 12%), with a 39% margin; Adjusted NPATA increased 23% to $122 million.

• Net income for Q3 2024 was $64 million, down from $80 million, mainly due to higher restructuring and legal costs.

• Adjusted NPATA per share (diluted) increased 24% to $1.34.

• Free cash flow for Q3 2024 was $83 million, compared to $123 million in the prior year, impacted by working capital changes.

Outlook and guidance

• Reaffirmed FY 2025 consolidated AEBITDA target of $1.4 billion and Adjusted NPATA guidance of $565–$635 million.

• Expecting full-year 2024 consolidated AEBITDA growth above 10%.

• Management expects no material impact on 2025 revenue from the Dragon Train injunction.