Gaming technology and content provider Light & Wonder Inc’s net income for the three months to June 30 rose 15.9 percent year-on-year to US$95 million. That was on revenue that fell 1.1 percent from a year earlier, to US$809 million, said the company on Wednesday.
Matt Wilson, the company’s president and chief executive, confirmed the group will transition to a sole listing on the Australian Securities Exchange (ASX) by the end of 2025.
Light & Wonder stated in a press release with the results: “The impact of macroeconomic uncertainty during the quarter led to more cautious purchasing behaviour and delayed capital expenditure among some of our customers, which impacted the timing of game sales.”
Second-quarter adjusted earnings before interest, taxation, depreciation and amortisation (AEBITDA) rose 6.7 percent year-on-year, to US$352 million.
JP Morgan Securities Australia Ltd said in a Thursday memo that Light & Wonder faces some challenges in meeting its original goal for AEBITDA in 2025.
“Light & Wonder requires circa 13 percent growth to reach the US$1.4-billion EBITDA target” for 2025, stated the institution.
“This will be an acceleration on the approximately 11 percent EBITDA growth in the first quarter and approximately 7 percent growth in the second quarter,” added JP Morgan in its Thursday note.
Light & Wonder stated in its quarterly announcement: “We remain committed to our long-term financial targets and value creation, as announced at our May 2025 Investor Day.”
The technology firm added that its full-year 2025 consolidated AEBITDA guidance was “inclusive of the Grover business”.
That was a reference to its US$850-million acquisition of the charitable gaming assets – known as Grover Charitable Gaming – of U.S.-based Grover Gaming Inc and G2 Gaming Inc. The deal was completed in May.
Light & Wonder’s 2025 AEBITDA guidance is in a range between US$1.43 billion and US$1.47 billion; and its guidance for its associated adjusted net profit after tax and before amortisation (NPATA) is between US$550 million and US$575 million.
According to JP Morgan, the firm’s AEBITDA guidance “is slightly ahead of current consensus”. It added: “Backing out the estimated Grover contribution implies the core business will miss the original US$1.4 billion EBITDA target if at the bottom end of the range.”
In May, Light & Wonder said it aims to achieve annual consolidated AEBITDA of US$2.0 billion by 2028. This would represent an overall growth rate of 42.9 percent over a three-year period.
Sole listing
Mr Wilson said regarding the company’s plan to drop its U.S. listing: “Following an extensive diligence process, I am excited to announce the board’s decision to transition to a sole ASX listing, which I believe will deliver tremendous shareholder value going forward.”
He added: “I have confidence in our strategy as we continue to execute to our long-term blueprint, which will continue to drive quality of earnings and sustainable value both operationally and financially.”
The delisting from the Nasdaq, in the United States, is “expected by end of November 2025,” stated the gaming supplier.
Light & Wonder trimmed its capital expenditure by 9.3 percent year-on-year in the second quarter, to US$78 million.
Aggregate revenue in the gaming segment – including gaming operations – stood at US$528 million in the three months to June 30, down 2.0 percent year-on-year.
Gaming segment AEBITDA were up 2.9 percent year-on-year, to US$280 million.
The average price of gaming units sold across all markets in the second quarter was US$18,930, up 2.1 percent year-on-year.
The company shipped a total of 9,039 new gaming machine units in the second quarter, down 20.1 percent from the prior-year period.
Second-quarter 2025 shipments included 3,585 units sold in the international market, including Asia Pacific, a figure down 34.8 percent year-on-year
Light & Wonder’s online platform SciPlay saw its revenue down 2.4 percent year-on-year, to US$200 million. Its AEBITDA were up 5.7 percent, to US$74 million.
Oliver Chow, the group’s chief financial officer, stated regarding the whole group’s share buyback programme and financing: “During the quarter, we continued to invest across the portfolio, arranged financing for the Grover acquisition and continued to execute to our share buyback programme.”
He further noted: “With the added US$500-million capacity to the programme, we expect a smooth transition to our sole ASX listing.”
The group said that for the first half of 2025, it returned US$266 million to shareholders through share repurchases, completing approximately 55 percent of the US$1.0-billion share repurchase plan authorised in June 2024.
Light & Wonder stated that the principal face value of its debt outstanding was US$4.9 billion, translating to a net debt leverage ratio of 3.7 times as of June 30, or combined net debt leverage ratio of 3.4 times. This “remained within our targeted net debt leverage ratio range of 2.5 times to 3.5 times, despite the accelerated pace of our share repurchases, capitalising on market dislocation and consistent with our capital allocation strategy,” added the group.
