Light & Wonder shares fall on earnings miss, 'surprise' delisting plans
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More news: Light & Wonder shares lowered after the gambling business reported lower-than-expected net profit and revenue results for the second quarter.
Shares were down 4.5% to $130.33 at 12:45pm AEST, having fallen 17% over the last 12 months.
Jarden analysts Rohan Gallagher and Charles Strong noted that Light & Wonder's Q2 net profit of US$95 million ($146 million) missed consensus estimates of US$144 million. Group revenue of US$809 million fell short of average forecasts of US$846 million.
The analysts also noted that FY25 earnings guidance of US$1.4 billion compared to market estimates of US$1.43 billion, while net profit guidance of US$550 million to US$575 million has been reduced from US$565 million to US$635 million.
They described Light & Wonder's decision to move to a sole ASX listing as soon as November as "a surprise" and "likely to create short-term share price volatility".
Light & Wonder posts 16% lift in Q2 profit, board clears Nasdaq delisting
The news: Gambling company Light & Wonder has reported a 16% increase in second-quarter net income to USD95 million ($146 million), but revenue edged lower year on year as the company cited "macroeconomic uncertainty" leading to more cautious purchasing behaviour.
The dual-listed company also confirmed its board has approved a sole primary listing on the ASX, and expects to delist from the Nasdaq by the end of November.
The numbers: Light & Wonder's consolidated revenue lowered 1% year on year to USD809 million, while adjusted earnings before interest, taxes, depreciation and amortisation (AEBITDA) rose 7% to USD352 million.
Light & Wonder also provided full-year AEBITDA guidance of between USD1.43 billion and USD1.47 billion, and adjusted net profit after tax guidance of between USD500 million and USD575 million.
The context: The company's board approved a sole listing on the ASX following a "comprehensive review", announced earlier this year. It said the decision reflected a strategic focus on aligning its capital markets presence with its long-term growth plans and shareholder base.
What they said: "Since we launched the secondary ASX listing back in May 2023, equity traded on the ASX now accounts for approximately 37% of our total equity," said Light & Wonder chair Jamie Odell.
"Our board has determined that moving to a sole primary ASX listing is in the best long-term interests of our shareholders."
The sources: ASX, Jarden research
