Quarterly earnings reveal sustained revenue expansion for Light and Wonder in Q1.
Light & Wonder's 2025 Q1 financial updates show a growth streak that's kept marching on. The company's latest revenue and profit figures, along with spotlighting some key advancements in their gaming and iGaming sectors, paint a picture of success amidst a few challenges.
Those gaming revenues? They climbed by a snappy 4%, ending up at a cool $495M. The diverse mix of offerings within this segment drove this growth. Cash flow from table games, gaming systems, and systems-related products increased significantly, with table products seeing a 9% leap, gaming systems gauging a 5% rise, and gaming operations and service revenue jumping by 5%. North America's installed base grew by 9% year-over-year, with the number of premium units on the rise and unit shipments soaring by 30%. The gaming segment's adjusted EBITDA rose a nifty 9%, with an even more impressive 51% margin. This growth was underpinned by a strong portfolio of gaming franchises and solutions, particularly in North America and Australia.
The iGaming segment chipped in with a 4% revenue increase, reaching $77M. This uptick was powered by momentum in the US market and the company's expanding partner network. However, the social gaming segment—SciPlay—slid slightly with a 2% revenue drop to $202M. Despite this, SciPlay managed to maintain revenue above the $200M mark for the sixth consecutive quarter, with an adjusted EBITDA of $64M and a margin expansion to 32%. Important user engagement metrics for SciPlay improved, with ARPDAU jumping 5% to a new record of $1.06 and AMRPPU climbing 3% to $116.96.
Overall, consolidated revenue for Q1 2025 came in at $774M, an uptick of 1.6% year-over-year and marking the 16th consecutive quarter of year-over-year growth. Adjusted EBITDA surged 10.7% to $311M compared to the same period a year ago, although it dipped 1% sequentially from the previous quarter. Even with headwinds like US tariffs impacting supply chains, Light & Wonder remains optimistic about hitting its annualized EBITDA target of $1.4 billion by year-end 2025.
Economic growth in the technology sector of Light & Wonder continues to thrive, as illustrated by a substantial 10.7% increase in Adjusted EBITDA for Q1 2025, amounting to $311M. Investments in gadgets, such as gaming systems and table games, contributed significantly to this growth, with cash flow surging from these products showing a notable increase, particularly in table products (up 9%) and gaming systems (up 5%).
