In a remarkable year of corporate maneuvers and robust performance across its divisions, Light & Wonder has closed the fiscal year with a staggering $2.90 billion in revenue, marking an all-time high for the diversified gaming and entertainment giant. As of 2023, the company has not only maintained a streak of impressive growth but has also strategically expanded its portfolio, cementing its leadership in the industry.
Key to the company’s success was the acquisition of the remaining shares in SciPlay, the social gaming division that Light & Wonder had originally spun off in 2019. The final 17% stake was snapped up for over $420.0 million, resulting in SciPlay becoming a fully integrated component of Light & Wonder’s burgeoning ecosystem. President and CEO Matthew Wilson expressed satisfaction with the integration, pointing out SciPlay’s stellar performance and attribution to consistent double-digit revenue growth across Light & Wonder’s three core businesses for the fifth consecutive quarter.
Wilson went further to praise SciPlay’s “beyond expectations” results in a “breakout” year, spotlighting the company’s remarkable consistency in delivering outstanding outcomes. The integration of SciPlay has allowed Light & Wonder to hone a more synergistic development process across all business segments, which has evidently paid off. Wilson underscored the exceptional growth trajectory of SciPlay, observing that it is quickly becoming the fastest-growing social casino company in the industry, claiming an impressive market share.
This accomplishment dovetails with a series of strategic divestitures made by Light & Wonder. In 2022, the company reshaped its portfolio by offloading its lottery business to Brookfield Business Partners in a massive $5.80 billion transaction and the sale of its OpenBet sports betting platform to Endeavor. These moves have freed up capital and resources, enabling Light & Wonder to zero in on its core areas of operation, refining its strategic focus.
Further bolstering its financial fortitude, Light & Wonder added a successful secondary listing on the Australian Securities Exchange in May 2023. According to Wilson, these maneuvers have positioned the company to drive long-term sustainable value and support ongoing investments into innovation and product enhancement.
A breakdown of the revenue numbers indicates that service revenue leaped by 10.9% to $1.99 billion, while product revenue saw an even more substantial 27.1% increase to $991 million. The gaming segment was the standout performer with revenues of $1.85 billion, marking a 15.6% increase. These gains were driven by a rise in gaming machine sales and enhanced gaming operations revenue, fortified by an expanded North American installed base.
SciPlay’s full incorporation into the Light & Wonder family translated into $777 million in generated revenue, a robust 15.8% year-over-year increase. This uptick was credited to growth within the core social casino business, propelled by heightened player engagement.
iGaming was not left behind, with Light & Wonder reporting a substantial 14.6% uptick in revenue to $275 million for the year, spurred by ongoing growth momentum across both U.S. and international markets.
Despite the rosy revenue picture, operating expenses did trend upwards by 6.5% to $2.38 billion, with the bulk attributed to selling, general, and administrative costs, which increased by 12.7% to $808 million. Other finance-related expenses, mainly interest, totaled $313 million, resulting in a $205 million pre-tax profit, a dramatic turnaround from last year’s $163 million loss.
After accounting for taxes, Light & Wonder realized a net profit from continuing operations of $180 million, starkly contrasting the previous year’s $176 million loss. When discontinued operations, including earnings from the divested lottery business, were accounted for, comprehensive net profit stood at $163 million for 2023. This figure diverged significantly from the prior year when the inclusion of discontinued operations income had driven net profit to $3.68 billion.
Adjusted EBITDA also rose by 22.5% to $1.12 billion year-on-year. In the closing quarter of 2023, corporate revenues touched $770 million, a 12.9% increase. This included a 13.2% growth in the gaming division and increases of 12.1% for SciPlay and 12.9% for iGaming. With well-executed asset divestitures mostly behind by the last quarter of 2022, the bottom line showed a net profit of $66 million, marking a pronounced 120.0% improvement from the prior year.
Wilson concluded, “2023 was a banner year for Light & Wonder. Our businesses delivered double-digit growth across the board throughout the year, enabled by strategic investments and strong execution. We consistently leverage a differentiated product strategy and plan to capitalise on the significant growth opportunities ahead of us. I am thrilled with the momentum we continue to see in the business and, with our winning mentality, experience and talent in place, we are well-positioned to continue our growth trajectory. I want to congratulate our team on a successful year and know the best is yet to come.”
