Light & Wonder, formerly known as Scientific Games, reported revenue from continuing operations of US$572 million in 1Q22, an increase of 26% year-on-year due to strong gaming momentum in the North American market.
However, the company still recorded a net loss of US$67 million, slightly lower than the US$88 million from a year earlier, following the recent sale of its lottery and sports betting businesses. Including revenues from those discontinued operations, Light & Wonder’s total income for the quarter came to US$28 million, reversing a US$9 million loss in 1Q21.
Adjusted EBITDA from continuing operations grew 42.3% year-on-year to US$202 million, or by 19.3% to US$322 million when discontinued operations are included.
By segment, gaming revenues grew by 45% to US$355 million and Adjusted EBITDA by 60% to US$171 million in Q1, with SciPlay revenues up 5% to US$158 million and iGaming revenues by 2% to US$59 million. SciPlay’s Adjusted EBITDA fell 4% to US$44 million while iGaming remained flat at US$1 million.
The quarter was significant for Light & Wonder, which not only sold off two core business segments but also changed its brand while reducing debt from US$8.9 million to US$4.0 billion.
The company also announced on Wednesday morning (Asia time) the acquisition content creation platform provider Playzido, which it says will significantly increase the scope of its iGaming content capabilities.
Barry Cottle, President and CEO of Light & Wonder, said, “We kicked off 2022 with a number of significant achievements and strong momentum across our businesses with strong revenue growth of 26% in the quarter. The sale of our Lottery Business was another significant milestone as we de-lever and maximize cash, which transformed our balance sheet reducing our net debt leverage ratio from a peak of 10.5x just over 15 months ago to an adjusted net debt leverage ratio of 3.7x, or by approximately seven turns.
“We are delivering on our promises to create great content cross-platform while expanding in high-growth digital markets and enabling a seamless player experience. With a reconstituted balance sheet, sustainable double-digit growth and strong cash generation, we now have the ability to significantly enhance shareholder value through a disciplined approach to capital allocation.”
“With the right assets, at the right time and with the right talent, Light & Wonder is fostering a high-performance culture with all the pieces in place to deliver on our vision. We are very excited about the next phase of our journey.”