Light & Wonder gains on Q4 result, ASX listing review
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The news: Dual-listed gambling play Light & Wonder was one of the ASX 200’s best performers in morning trade after reporting a stronger-than-expected fourth-quarter profit, aided by revenue growth in its core gaming division.
The numbers: Light & Wonder shares were up 5.7% to $167.56 at 11:55am AEDT, extending gains of more than 20% since the turn of the year.
Fourth-quarter net profit of USD107 million ($168.5 million), up 67% year on year, outstripped market estimates of USD83 million. Full-year profit rose 87% to USD336 million.
Group revenue rose 3.5% year on year to USD797 million for the quarter, lower than consensus forecasts of USD801 million. However, gaming revenue of USD515 million beat estimates of USD511 million.
The company retained its FY25 earnings (AEBITDA) guidance of USD1.4 billion and net profit guidance of between USD565 million and USD625 million.
The context: Light & Wonder president and CEO Matt Wilson said gaming machine market share gains in North America and Australia were underpinned by the company’s investment in research and development, as well as its commercial strategy and product roadmap.
He noted that Light & Wonder's recently announced $1.34 billion acquisition of Grover Gaming's charitable business enhances its cross-platform strategy, providing a broader distribution base for its content library and accelerating future growth.
Elsewhere, nearly two years after dual-listing on the ASX, Light & Wonder said it is considering "both a dual primary and a sole listing on the ASX" to enhance the liquidity and market capitalisation of its Australian listing.
The company, which is also listed on the Nasdaq, has engaged Jarden Australia and Goldman Sachs to evaluate potential strategies to achieve this outcome.
The sources: ASX, Jarden research
