Light & Wonder shares slide on tariff cost warning
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The news: Light & Wonder shares tumbled in early trading after the gambling company reported a rise in gaming revenue but warned that US tariffs would create near-term cost pressures.
The numbers: Shares in the company were down 5.71% to $137.10 by 11:27am AEST, making it the worst performer across the ASX 200.
Light & Wonder said it remains on track to achieve its USD1.4 billion ($2.17 billion) consolidated AEBITDA target for 2025, along with its adjusted NPATA target range. The company posted first-quarter revenue of USD774 million, up 4% from the same period last year.
Gaming revenue rose 4% to USD495 million, while iGaming revenue also increased 4% to USD77 million. However, revenue from its social casino game subsidiary, SciPlay, fell 2% to USD202 million.
The context: The company noted that it expected recent tariffs and trade policies from the US to create “incremental cost pressures in the near term” however, it expected its operational efficiency initiatives and other measures to mitigate the effects.
What they said: “Potential adverse impacts on our operating results include increased costs for our products and disruptions in our manufacturing and supply,” Light & Wonder said.
“... While we believe we can adapt our business strategy to mitigate these effects, there is no assurance that these efforts will fully offset any increased costs.”
The source: ASX
