Light & Wonder Q3 Net Income Rises 17% to US$133m as Revenue Dips

Light & Wonder made more money in the third quarter while selling slightly less. The casino equipment and online games supplier posted net income of US$133 million for the three months to 30 September, up from US$114 million a year earlier, on revenue that fell 2% to US$824 million.

The company also named a new chief executive for its social casino arm SciPlay, and it signalled that full-year profit growth will land at the low end of its earlier forecast.

How did Light & Wonder’s third quarter look in numbers?

Consolidated adjusted EBITDA edged up to US$383 million. iGaming Today put the rise at 2.1% and said operating expenses fell 4.9% to US$582 million. Inside Asian Gaming reported that adjusted net profit after tax rose 7% to US$163 million, and credited “favorable revenue mix shifts and ongoing operational efficiencies” for the margin strength.

The revenue miss was real. According to iGaming Today, a Thursday note from JP Morgan Securities Australia judged the result to be below both market consensus and the bank’s own estimates.

Which businesses grew and which shrank?

Gaming revenue slipped 0.7% to US$554 million, per iGaming Today, though the picture inside it was mixed. Gaming operations revenue rose to US$248 million, which the company tied to a bigger North American installed base and more revenue per unit each day on average. Machine sales rose 5% to US$199 million.

Gaming systems revenue fell 24% to US$55 million, and Inside Asian Gaming said table products revenue dropped 7% to US$52 million because of the timing of utility sales.

The company shipped 8,906 new gaming machines worldwide, compared with 8,608 a year before. Of those, 3,027 went to international markets, including Asia Pacific, against 2,587 in the same quarter last year.

What did management say about debt and the outlook?

Light & Wonder said it cut debt by US$153 million during the quarter, to around US$5 billion, with net leverage easing to 3.3 times. iGaming Today gave net debt as US$4.88 billion at 30 September, down from US$5.02 billion at 30 June.

Chief executive Matt Wilson pointed to the North American premium installed base growing for a 25th consecutive quarter and to a warm reception for the company’s roadmap at the AGE and G2E trade shows. Chief financial officer Oliver Chow said the company was investing in research and development, gaming operations capital expenditure, AI and infrastructure, while keeping debt reduction a priority.

The guidance was less upbeat. iGaming Today reported that the company now expects 2026 adjusted EBITDA growth at the low end of its earlier mid-to-high single-digit range. It said JP Morgan worked out that this needs about 4% growth in the final quarter to reach 5% for the year, and that the bank pointed to a weak social casino business and customers putting off capital spending.

Further out, Inside Asian Gaming noted a new goal of US$2 billion in adjusted EBITDA by 2028, after the company reached its earlier aim of US$1.4 billion by 2025.

Who is the new SciPlay chief?

Matthieu Labbat became SciPlay chief executive with immediate effect, iGaming Today reported. His most recent job was at rival Aristocrat Leisure Ltd, where he was senior vice president and ran Product Madness, with responsibility for the mobile gaming business’s profit and loss.

Wilson said Labbat’s record in building and growing mobile gaming businesses, plus his product skills and talent for developing teams, made him a good fit for the role. He takes over a division whose revenue fell 12% in the quarter, which Inside Asian Gaming linked to continuing softness across the free-to-play social casino market.