for early access to the latest igaming videos!
and get the latest igaming news first!
Light & Wonder Inc reported higher second-quarter revenue and net income, supported by growth across its gaming-related businesses. Revenue rose 2.4% year-on-year to US$828 million for the 3 months to June 30, while net income increased 26.3% to US$120 million.
Gaming and iGaming Support Results
The company said consolidated adjusted EBITDA reached US$383 million in the second quarter, up 8.8% from a year earlier. Light & Wonder said the performance reflected growth in its land-based gaming and iGaming segments, together with stronger operating margins and improved cash generation.
The group operates through 3 main segments: land-based gaming, the digital games unit SciPlay, and iGaming. Chief executive Matt Wilson said the quarter showed continued execution of the company’s content-centric operating model, with broad-based growth, margin expansion, and quality earnings across all 3 businesses.
Wilson said the benefits of ongoing investment in studios and content continued to show through the performance of the company’s franchises. The results, he said, were supported by strong game performance across the portfolio.
Gaming Segment Remains Largest Contributor
Gaming remained Light & Wonder’s largest business in the April-to-June period, with segment revenue increasing 4.9% year-on-year to US$554 million. Within that, revenue from gaming operations rose 18.2% to US$247 million, helped by continued growth in the North American premium installed base and contributions from the Grover charitable gaming business.
Light & Wonder bought the charitable gaming assets of U.S.-based Grover Gaming Inc and G2 Gaming Inc in May last year for US$850 million. The company said gaming machine sales revenue fell 3.7% to US$184 million, mainly because of lower unit shipments tied to fewer new openings and expansions, as well as lower adjacencies, although average selling price per unit stayed steady.
The company shipped 8,796 new gaming machine units worldwide in the second quarter, down from 9,039 units a year earlier. Out of which 3,823 units were sold abroad, including in the Asia Pacific, compared to 3,585 units in the year ago period.
Mixed Performance Across Other Segments
Light & Wonder’s iGaming revenue increased 13.5% year-on-year to US$92 million in the quarter. By contrast, SciPlay revenue declined 9.0% to US$182 million.
The company said in November that it moved to a sole primary listing on the Australian Stock Exchange. Moreover, it maintained its guidance for the adjusted EBITDA growth rate of its consolidated full year 2026 to remain in mid- to high-single-digit percentage range.
Its net debt balance as of June 30 stood at US$5.2 billion, with net debt leverage multiple standing at 3.4x at the end of the quarter. Light & Wonder stated that it continues to target to reduce this multiple below 3.0x in the first half of 2027.
Cash Generation And Market Reaction
Chief financial officer Oliver Chow said the quarter showed continued scaling across the business, with margin expansion in all 3 segments translating into strong underlying cash generation. He also said the company accelerated share repurchases during the second quarter, returning US$134 million to shareholders, while continuing to invest in artificial intelligence and infrastructure to support growth and efficiency.
In a Wednesday memo, JP Morgan Securities Australia Ltd said revenue came in below its estimates and market consensus, citing weaker North America outright sales. The institution also noted that Light & Wonder’s adjusted EBITDA margin of 46.3% outperformed both its own forecast and market consensus by 200 basis points and 280 basis points, respectively.
Source: GGR Asia
