Light & Wonder shares lower despite tracking FY guidance
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More news: Shares in Light & Wonder tumbled in morning trade on the ASX, despite the gaming company reaffirming full-year guidance and downplaying the impact of its copyright battle with rival group Aristocrat Leisure.
Light & Wonder shares were down 7.1% to $147.76 by 11:05am AEDT.
Light & Wonder reaffirms FY guidance, downplays legal setback
The news: Gaming company Light & Wonder reaffirmed its full-year guidance after reporting its ninth consecutive quarter of double-digit revenue growth.
The numbers: Consolidated revenue increased 12% year on year to USD817 million ($1.25 billion) in the September quarter, with gaming revenue up 15%, driven by global gaming machine sales growth which climbed 38%.
Revenue from its social casino business SciPlay grew 5% year on year, while revenue from its sports betting and online gambling segment, iGaming, rose 6%.
Adjusted NPATA increased 23% to USD122 million. Consolidated AEBITDA was up 12% to USD319 million, while net income decreased 20% to USD64 million, impacted by higher restructuring and legal costs.
Light & Wonder provided a targeted adjusted NPATA range between USD565 million and USD635 million for FY25, and reaffirmed its full-year consolidated AEBITDA guidance of $1.4 billion.
The context: The US company, which dual-listed on the ASX in May last year, noted that it had replaced or converted 95% of its 2,200 Dragon Train-themed poker machines during the quarter.
In September, a US district court filed an injunction in relation to the games which ASX rival Aristocrat claimed breached copyright for its own Dragon Link pokies.
Light & Wonder said its pre-ruling estimate of 2025 consolidated AEBITDA for Dragon Train was less than 5% of its $1.4 billion target.
The source: ASX announcement
