Live-dealer gaming services will no longer be offered by Light & Wonder.
Hey there, folks! This ain't no snooze-fest. Light & Wonder, the big kahuna in the gaming industry, recently spilled the beans on their earnings call - and it was a doozy!
CEO Matt Wilson and CFO Oliver Chow held court for 32 minutes, leaving analysts gasping for breath as they dropped exciting news left and right. While most of the focus was on their gaming division, they did casually mention a surprise: Light & Wonder is axing their live-dealer iGaming games. But fear not, this move is expected to give their coffers a healthy boost!
Wilson started things off on a high note, declaring another year of significant progress, and their commitment to delivering sustainable growth. The cherry on top was their recent acquisition of Grover Gaming, which boasts an attractive recurring revenue base and a loyal customer base.
"Gaming is still killing it," said Wilson, proudly announcing the installation of 850 extra machines in North America. Ten of these bad boys even snagged spots on Eilers' slot machine rankings' top 25.
"I'm feeling optimistic," Wilson declared, predicting a rebound in gaming operations in 2025. Not to brag, but Light & Wonder tops the charts when it comes to shipping shares of machines in both North America and Australia.
SciPlay, their social-casino unit, had a so-so year, but it was still a record-breaker in 2024. Their secret sauce? A nimble team that knows how to adapt.
Unfortunately, their star concept, Jackpot Party, didn't meet fourth-quarter expectations. But no worries, World, more exciting launches are on the horizon.
In iGaming, Light & Wonder has been busy striking partnerships, like their recent bromance with FanDuel. Expect a flurry of first-party content in the near future!
Chow took over, bragging about an impressive 10% increase in annual revenue and a 4% quarterly boost. Cash flow improved by 11%, and North American revenue per slot per day edged up 2%. Clearly, Light & Wonder's slot cabinets are flying off the shelves, fetching an average $18,000 each!
Chow went on to share info on their ventures in Brazil's iGaming market and their meaty new credit line. "We're living the high life", said Chow, "with our products being in ultra-demand."
A key focus for Light & Wonder is the charitable-gaming space, courtesy of the Grover Gaming acquisition. "Game on", said Chow, as he discussed their ambitious plans to conquer this new frontier.
Switching gears over to Q&A, Wilson boasted that they'd smash their $1.4 billion cash-flow target for 2025, with revenues from Grover being a nice added bonus. What's more, they see plenty of room for growth in states where iGaming is legal.
Dragon Train drama? "Yes, we survived", said Wilson. But don’t fret, there's more Huff 'n Puff games and Wizard of Oz-themed wonders to come. "The future's looking bright," added Chow.
So what about international trade wars and sweepstakes games? "We're working around the clock to navigate these choppy waters," said Chow, assuring us they've got a cunning strategy to handle these global spats.
Lastly, Wilson responded to concerns about a potential cooling in demand for slot machines. "Don't worry, there's plenty of steam left in this engine," he said, highlighting the gains in casino floors from revenue-sharing games.
Wilson ended on a high note, setting a May 20 investor day and promising to share more exciting news then. Stay tuned, folks. This ride ain't over yet!
Insights:
- Light & Wonder is phasing out their live-dealer iGaming games, anticipating a positive impact on cash flow.
- Their recent acquisition of Grover Gaming is a strategic move to further expand their presence in the charitable-gaming space.
- Partnerships with brands like FanDuel will lead to a flood of first-party content in the coming months.
- Global trade wars and sweepstakes games remain challenges that the company is addressing through diversification and a focus on regulated markets.
- Revenue-sharing games are on the rise on casino floors, with Light & Wonder excited about the opportunities they represent.
Light & Wonder is focusing on boosting their cash flow by phasing out their live-dealer iGaming games and anticipating success from their recent acquisition of Grover Gaming, which will further expand their charitable-gaming presence. Additionally, they are forming strategic partnerships with brands like FanDuel, which will lead to an influx of first-party content. As for international trade wars and sweepstakes games, Light & Wonder is actively navigating these challenges by diversifying and focusing on regulated markets.
