Light & Wonder(US:LNW)2024-11-12 21:07Financial Performance - Consolidated revenue for Q3 2024 was $817 million, a 12% increase from $731 million in Q3 2023, marking the 14th consecutive quarter of year-over-year growth[7] - Total revenue for Q3 2024 was $817 million, a 11.8% increase from $731 million in Q3 2023[24] - Gaming revenue rose to $537 million, up 15% year-over-year, driven by a 38% increase in global gaming machine sales[11] - SciPlay revenue increased to $206 million, a 5% rise from the previous year, with the social casino business contributing significantly to growth[11] - iGaming revenue grew to $74 million, a 6% increase, despite a prior year benefit from $3 million in license termination fees that impacted growth by 4%[2] - Operating income for Q3 2024 was $159 million, compared to $147 million in Q3 2023, reflecting a 8.2% growth[24] - Net income decreased to $64 million from $80 million in the prior year, primarily due to higher restructuring costs[7] - Net income attributable to Light & Wonder for Q3 2024 was $64 million, down from $75 million in Q3 2023[24] - Consolidated AEBITDA reached $319 million, a 12% increase from $286 million in the prior year, reflecting strong revenue growth and margin strength[7] - Consolidated AEBITDA for the three months ended September 30, 2024, was $319 million, up from $286 million in the same period last year, representing an increase of approximately 11.5%[29] - Consolidated AEBITDA for the twelve months ended September 30, 2024, was $1,232 million, compared to $1,118 million for the previous year, representing a growth of 10.21%[35] Shareholder Returns - The company returned $44 million to shareholders through share repurchases during Q3 2024[4] Expenses and Costs - Total operating expenses for Q3 2024 were $658 million, compared to $584 million in Q3 2023, representing a 12.7% increase[24] - Research and development expenses increased to $66 million in Q3 2024 from $55 million in Q3 2023, indicating a focus on innovation[24] - Interest expense decreased to $73 million in Q3 2024 from $78 million in Q3 2023, indicating improved debt management[24] - Payments on license obligations decreased to $6 million in Q3 2024 from $8 million in Q3 2023, indicating a 25% reduction[36] - The company incurred professional fees related to strategic review activities amounting to $3 million in Q3 2023, with no such costs reported in Q3 2024[36] Capital Expenditures - Capital expenditures for Q3 2024 were $71 million, slightly up from $70 million in the prior year, supporting ongoing growth in gaming operations[11] - Capital expenditures for the three months ended September 30, 2024, were $71 million, compared to $70 million in the same period of 2023, showing a marginal increase[27] - Capital expenditures for the nine months ended September 30, 2024, totaled $224 million, compared to $182 million for the same period in 2023, reflecting a 23.1% increase[36] Debt and Leverage - The principal face value of debt outstanding was $3.9 billion, with a net debt leverage ratio of 2.9x, down from 3.1x at the end of 2023[4] - Net debt as of September 30, 2024, was $3,567 million, with a net debt leverage ratio of 2.9, down from 3.1 as of December 31, 2023[35] - The net debt leverage ratio is monitored as part of the company's financial strategy, although specific forward-looking targets are not provided due to uncertainties[44] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2024, was $430 million, slightly up from $423 million in the same period of 2023[27] - Net cash provided by operating activities for the three months ended September 30, 2024, was $119 million, a decrease of 41.6% compared to $204 million in the same period of 2023[36] - Free cash flow for the three months ended September 30, 2024, was $83 million, down 32.5% from $123 million in the same period of 2023[36] - The net cash used in financing activities for the three months ended September 30, 2024, was $66 million, down from $146 million in the same period last year, indicating improved cash management[27] Market Trends and Outlook - Light & Wonder anticipates continued growth in total consumer spending on social casino gaming, reflecting positive market trends[21] - The company reaffirmed its target of $1.4 billion in consolidated AEBITDA for FY 2025[3] Operational Metrics - The weighted average number of diluted shares for Q3 2024 was 91 million, slightly up from 92 million in Q3 2023[23] - The company reported a consolidated AEBITDA margin of 39% for the three months ended September 30, 2024, consistent with the margin from the same period in 2023[29] - Average daily revenue per unit in the U.S. and Canada was $49.05 in Q3 2024, compared to $48.64 in Q3 2023, showing an increase of 0.84%[34] - The installed base of gaming machines in the U.S. and Canada increased to 33,151 units, up from 31,035 units year-over-year, indicating a growth of 6.84%[34] - Total new unit shipments for gaming machines in Q3 2024 were 13,063, compared to 8,685 in Q3 2023, reflecting a substantial increase of 50.06%[34] - Wagers processed through the Open Gaming System reached $22.8 billion in Q3 2024, up from $20.2 billion in Q3 2023, an increase of 12.93%[34] New Metrics - Adjusted NPATA for Q3 2024 increased to $122 million, compared to $99 million in Q3 2023, reflecting a growth of 23.23%[31] - Adjusted NPATA per share on a diluted basis was introduced in Q3 2024, providing a new metric for performance evaluation[41] - Consolidated AEBITDA is used to evaluate operational performance and is adjusted for various non-operational items, enhancing comparability with other companies[38] - The company emphasizes that free cash flow is crucial for assessing liquidity and the ability to fund investments after necessary capital expenditures[43]