Light & Wonder, Inc. · ASX:LNW
Light & Wonder — Q4 2024 Earnings Presentation
30 slides from Light & Wonder's earnings presentation, Feb 25, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Presentation
Fourth Quarter and Full Year 2024 Earnings Presentation February 25, 2025 © 2025 LIGHT & WONDER
Slide 2: Forward-Looking Statements
SECTION TITLE, 10PT Forward-Looking Statements In this presentation, Light & Wonder makes “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements describe future expectations, plans, results or strategies and can often
Slide 3: Delivered Record FY Performance on Strong Execution
Delivered Record FY Performance on Strong Execution IN $MILLIONS Consolidated Revenue Consolidated AEBITDA(1) Adjusted NPATA(1) $3,188 $1,244 $480 15 Consecutive Quarters $2,902 $388 $1,118 Consolidated Revenue Growth YoY $127 $797 $770 $109 $315 $302 4 Consecutive Quarters* 4% 10% 4% 11% 17% 24% Do
Slide 4: Diverse Portfolio Drove Resilient Quarterly Performance
Diverse Portfolio Drove Resilient Quarterly Performance Gaming Ended 2024 with Solid Performance across Business Segments • Achieved 4% YoY growth in both Consolidated Revenue and Consolidated AEBITDA(1) • Adjusted NPATA(1) grew 17% compared to the prior year period • Gaming Revenue +4% YoY, led by
Slide 5: Grover Gaming Charitable Business Transaction Overview
Grover Gaming Charitable Business Transaction Overview • Light & Wonder has agreed to acquire Grover Gaming’s charitable gaming business for total consideration of: o An upfront amount of $850 million cash, subject to customary purchase adjustments, and o A revenue-based earn-out of up to $200 milli
Slide 6: A Leading Player in the Charitable Gaming E-Pull Tab Market
A Leading Player in the Charitable Gaming E-Pull Tab Market +1,500 +10,000 5 states ~$135m ~$111m Customers Installed devices Operational 2024 2024 Revenue(1) Grover Adjusted EBITDA(2) North Dakota • A leading provider in the E-Pull tabs charitable gaming market Ohio • Currently provides E-Pull tabs
Slide 7: Operational Highlights
Operational Highlights © 2025 LIGHT & WONDER 7
Slide 8: Gaming Performance Underpinned by Well-Rounded Portfolio
Gaming Performance Underpinned by Well-Rounded Portfolio IN $MILLIONS Revenue AEBITDA Key Gaming Highlights • 4Q24 Gaming Revenue increased 4% YoY, with drivers of $2,068 $1,027 Systems Revenue growth of 24%, coupled with growth in the $1,850 N.A. installed base $918 o Gaming Operations revenue up 4
Slide 9: Continued Progress in Key Gaming Performance Metrics
Continued Progress in Key Gaming Performance Metrics Key 4Q24 & FY24 Gaming KPI Highlights • N.A. installed base increased 9% YoY to over 34,000 units; N.A. 4Q24 4Q23 Var% 2024 2023 Var% premium units grew for 18th consecutive quarter, now Gaming Operations KPI: representing ~50% of total N.A. insta
Slide 10: Sustained Investment in Hardware and Content Roadmap
Sustained Investment in Hardware and Content Roadmap COSMICTM MURALTM KASCADATM DUAL SCREEN HORIZONTM LANDMARKTM 7000 FAMILY Key Titles Key Titles Key Titles Key Titles Key Titles MONOPOLY is a trademark of Hasbro. Used with Permission. © 2025 Hasbro. All rights reserved. Dracula is a trademark and
Slide 11: 2024 Gaming Notable Achievements
2024 Gaming Notable Achievements Upgrade of Huff N’ PuffTM franchise from Signed 11 systems deals globally #1 Ship Share in N.A. in 2Q24 – 4Q24(1)(2) Outright Sales to Leased Further proliferation in North America Launched new game studios #1 Ship Share in Australia(3) in 2024 Adjacent Markets(4) N.
Slide 12: Progressing on Key Strategic Initiatives at SciPlay
Progressing on Key Strategic Initiatives at SciPlay IN $MILLIONS Revenue AEBITDA Key SciPlay Highlights $821 • Revenue was $204 million in the quarter, driven by record revenues $272 from QUICK HITTM and 88 FORTUNESTM $777 • 4Q24 AEBITDA of $74 million a result of AEBITDA margin $243 expansion to 36
Slide 13: 2024 SciPlay Notable Achievements
2024 SciPlay Notable Achievements Diverse game portfolio with strong performance Further sharpening of competitive edge 2 consecutive years of outpacing Social Casino Market Revenue growth Jackpot PartyTM Quick Hit SlotsTM achieved achieved record 20% revenue growth and 14th annual revenue consecuti
Slide 14: Fueling iGaming Growth Through Expanded Portfolio
Fueling iGaming Growth Through Expanded Portfolio IN $MILLIONS Key iGaming Highlights Revenue AEBITDA • Maintained record quarterly revenue of $78 million, up 11% YoY primarily driven by strong performance in North American and European markets, compelling product $299 launches, along with overarchi
Slide 15: 2024 iGaming Notable Achievements
2024 iGaming Notable Achievements Record Gross Gaming Revenue (GGR) o Global OGS(1) GGR experienced record volumes, with record processed wagers of $91 billion Robust Gaming Production & Performance o 1,000 game releases in 2024 with support from Lightning Box and ELK Studio o Record Launches with t
Slide 16: Financials
Financials © 2025 LIGHT & WONDER 16
Slide 17: Continued Operational Momentum Driving 2024 Results
Continued Operational Momentum Driving 2024 Results IN $MILLIONS Key Highlights Consolidated Consolidated • Achieved 4% YoY Consolidated Revenue growth in the Revenue AEBITDA(1) quarter, driven by resilient performance across all businesses o Gaming segment uptick provided from 24% growth in $3,188
Slide 18: Enhanced Capital Structure Driving Future Growth
Enhanced Capital Structure Driving Future Growth IN $MILLIONS Net Debt Key Highlights Interest Expense Leverage Ratio(1) • Ended the quarter with a principal face value of debt outstanding of $3.9 billion and net debt leverage ratio(1) of 3.0x, remaining within targeted range(1)(2) of 2.5x to 3.5x •
Slide 19: Optimizing Free Cash Flow on Strong Business Momentum
Optimizing Free Cash Flow(1) on Strong Business Momentum IN $MILLIONS Key Highlights 4Q24 4Q23 2024 2023 • Free Cash Flow(1) was $74 million in the quarter Net cash provided by operating activities $ 202 $ 167 $ 632 $ 590 compared to $70 million in the prior year period Less: Capital expenditures (7
Slide 20: Appendix
Appendix © 2025 LIGHT & WONDER 20
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company’s management (“Management”) uses the following non-GAAP financial measures in conjunction with Consolidated AEBITDA (representing AEBITDA from continuing operations) GAAP financial measures: Consolidated AEBITDA (representing continuing operations), Consolidat
Slide 22: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) addition to the preceding adjustments, we exclude Earnings from equity investments and add (without duplication) Adjusted NPATA Per Share - Diluted discontinued operations pro rata share of EBITDA from equity investments, which represents their share of earnin
Slide 23: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) Basis of Presentation This presentation contains certain non-GAAP measures and run rate-adjusted and combined financial information which has been derived from the preliminary and unaudited financial information of Grover Charitable Gaming, without any other a
Slide 24: L&W Reconciliation of Consolidated AEBITDA, AEBITDA from Discontinued Operations and Combined AEBITDA
L&W Reconciliation of Consolidated AEBITDA, AEBITDA from Discontinued Operations and Combined AEBITDA Note: Unaudited, U.S. Dollars in millions. 1. EBITDA from equity investments is a non-GAAP financial measure reconciled to Earnings from equity investments on slide 29. © 2025 LIGHT & W ONDER 24
Slide 25: L&W Reconciliation of Adjusted NPATA and Adjusted NPATA Per Share
L&W Reconciliation of Adjusted NPATA and Adjusted NPATA Per Share Note: Unaudited, U.S. Dollars in millions. (1) Refer to the Adjusted NPATA definition above for a description of items included in restructuring and other. © 2025 LIGHT & W ONDER 25
Slide 26: L&W Reconciliation of Principal Face Value of Debt Outstanding to Net Debt Leverage Ratio
L&W Reconciliation of Principal Face Value of Debt Outstanding to Net Debt Leverage Ratio Note: Unaudited, U.S. Dollars in millions. 1. Combined AEBITDA consists of Consolidated AEBITDA, AEBITDA from discontinued operations and EBITDA from equity investments included in continuing operations. Refer
Slide 27: L&W Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
L&W Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Note: Unaudited, U.S. Dollars in millions. 1. Includes $12 million collected for the three months and year ended December 31, 2024 related to Management designated restricted funds associated with certain Dragon Train
Slide 28: L&W Reconciliation of Consolidated AEBITDA Margin
L&W Reconciliation of Consolidated AEBITDA Margin Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 Consolidated AEBITDA (1) $ 315 $ 302 $ 1,244 $ 1,118 Revenue 797 770 3,188 2,902 Net income margin 13 % 9% 11 % 6% (2) Consolidated AEBITDA margin 40 % 39 % 39 % 39
Slide 29: L&W Reconciliation of Earnings from Equity Investments to EBITDA from Equity Investments
L&W Reconciliation of Earnings from Equity Investments to EBITDA from Equity Investments Note: Unaudited, U.S. Dollars in millions. (1) Combined EBITDA from equity investments consists of EBITDA from both discontinued and continuing operations equity investments. © 2025 LIGHT & W ONDER 29
Slide 30: Reconciliation of Operating Income to Grover Adjusted EBITDA
Reconciliation of Operating Income to Grover Adjusted EBITDA (Preliminary and Unaudited) Year Ended December 31, 2024 Operating Income $ 82 Depreciation and amortization 18 (1) Distribution costs and other 11 Grover Adjusted EBITDA $ 111 Note: Unaudited, U.S. Dollars in millions. (1) Primarily repre