Light & Wonder shares climb on Q1 earnings
Make us a preferred source
Make us a preferred source on Google
The news: Light & Wonder shares lifted on the ASX in morning trade after the US gambling company reported higher-than-expected earnings for the first quarter.
The numbers: Light & Wonder's group revenue rose 13% year on year to USD756 million ($1.15 billion), beating consensus estimates of USD736 million.
Each of its three segments saw double-digit revenue growth compared to the corresponding period, with gaming up 14% to USD476 million, iGaming up 14% to USD74 million, and Light & Wonder's recently acquired social games subsidiary SciPlay up 11% to USD206 million.
Adjusted EBITDA rose 13% compared to the prior corresponding period to USD281 million, 2% above consensus. Meanwhile, NPAT of USD82 million was 17% above consensus.
Shares were up 1.5% to $151.84 at midday AEST.
Jarden kept its 'buy' rating on the stock with a price target of $164.
The context: Light & Wonder, dual-listed on the ASX and Nasdaq, said it "started 2024 on a strong note" delivering its 12th consecutive quarter of year-on-year consolidated revenue growth.
The company's president and CEO Matt Wilson noted that its global product offerings drove game sales growth in North America and its international markets, led by Australia and Asia.
After confirming its secondary listing on the ASX in May last year, Light & Wonder reached the ASX 200 in September. The following month, the Las Vegas-based business secured a deal with streaming giant Netflix, with plans to roll out new poker machine games based on the hit series Squid Game this year.
The sources: Jarden research, Light & Wonder earnings release
