The growing cross-platform game company, formerly known as Scientific Games Corporation, Light & Wonder, released its financial results for the second quarter ended June 30, 2022.
Light and Wonder Enjoys Successful Second Quarter
The company said Tuesday that its revenue for the second quarter this year hit $610 million. When compared to the $581 million in revenue reported in Q2 last year, an increase of nearly 5% is observed. Although the company has seen revenue growth, it also reported a higher net loss on a year-over-year basis. In Q2, 2021, Light & Wonder’s net loss was $51 million, while this year, it increased to $150 million.
Among other things, the company’s capital expenditures increased as well. For the second quarter this year, Light & Wonder’s capital expenditures hit $57 million, up from the $40 million reported for the same period in 2021. On the other hand, the company’s consolidated AEBITDA for the period decreased. In Q2, 2021, the company reported a consolidated AEBITDA of $232 million. This year, consolidated AEBITDA decreased by 8.6% to $212 million.
A breakdown provided by Light & Wonder reveals that the company’s Gaming and SciPlay operations reported a year-over-year increase in revenue. A total of $367 million was reported in revenue for the second quarter of 2021 from the company’s gaming segment. When compared to the $390 million in revenue reported this year, an increase of 6% is observed. Similarly, Light & Wonder’s SciPlay operations reported a 4% increase in revenue to $160 million for the second quarter this year.
The Company Follows Its Transformation Strategy
Connie James, Light & Wonder’s CFO, outlined that in the past year, the company went through a fast and scalable financial transformation. She explained that the transformation was boosted even further during the quarter thanks to the sale of the company’s Lottery business. James said that the recent sale combined with “refinancing transactions” provided flexibility for Light & Wonder which in turn will help the business continue to invest and grow.
“Collectively, these transactions have transformed our balance sheet, enabling us to end the quarter with a net debt leverage ratio(2) of 3.6x, 7 turns lower than where we stood at the beginning of last year.”
Connie James, CFO at Light & Wonder
Barry Cottle, Light & Wonder’s CEO, added that the company continues to follow its vision to transform which helped boost its results for the second quarter. What’s more, he said: “We closed on the sale of our Lottery business for $5.7 billion in gross cash proceeds, which we used to significantly de-lever our balance sheet as we continue to deliver on our promises.” Cottle outlined that the company achieved a significant transformational milestone in light of the recent closing of the Lottery business sale and the expected closing sale of its sports betting operations.