Light & Wonder, Inc. · ASX:LNW
Light & Wonder — Q1 2025 Earnings Presentation
25 slides from Light & Wonder's earnings presentation, May 7, 2025
Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation May 7, 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: Return to Double-Digit Consolidated AEBITDA Growth
Return to Double-Digit Consolidated AEBITDA(1) Growth IN $MILLIONS Consolidated Revenue Consolidated AEBITDA(1) Adjusted NPATA(1) $774 16 Consecutive Quarters $756 $311 Consolidated Revenue $281 Growth YoY $117 $105 5 2% Consecutive Quarters* 11% 11% Double-Digit Adjusted NPATA(1) Growth YoY 1Q24 1Q
Slide 4: Business Resiliency Driving Continued Growth
Business Resiliency Driving Continued Growth Gaming Executed on Expansive Portfolio across Business Segments • Achieved 2% and 11% YoY growth respectively in Consolidated Revenue and Consolidated AEBITDA(1) • Adjusted NPATA(1) grew 11% compared to the prior year period • Gaming Revenue +4% YoY, led
Slide 5: Operational Highlights
Operational Highlights © 2025 LIGHT & WONDER 5
Slide 6: Gaming Performance Underpinned by Well-Rounded Portfolio
Gaming Performance Underpinned by Well-Rounded Portfolio IN $MILLIONS Revenue AEBITDA Key Gaming Highlights • Gaming Revenue increased 4% YoY, with each business line seeing growth in the quarter $495 $476 o Gaming Operations revenue up 5% YoY led by growing $254 mix of premium titles in our N.A. in
Slide 7: Continued Progress in Key Gaming Performance Metrics
Continued Progress in Key Gaming Performance Metrics 1Q25 1Q24 Var% Gaming Operations KPI: U.S. and Canadian: 1Q25 Gaming KPI Highlights Installed base at period end 34,501 31,534 ▲ 9% Average daily revenue per unit(3) $48.25 $48.82 ▼ (1)% • N.A. installed base increased 9% or nearly 3,000 units YoY
Slide 8: Capitalizing on Strong Content & Hardware Roadmap
Capitalizing on Strong Content & Hardware Roadmap Super Hot Flaming Pots Kong Skull Island Cosmic Upright 2 of Top 5 Top Performing Top Performing Performing NEW NEW WAP Game Portrait Upright Cabinet(3) Core Games(1), in 1Q25(2) debuted at #1(2) #1 #1 #1 Landmark 7000 NEW Premium Lease & WAP NEW Cor
Slide 9: Continued Execution on Monetization & Profitability at SciPlay
Continued Execution on Monetization & Profitability at SciPlay IN $MILLIONS Revenue AEBITDA Key SciPlay Highlights • Revenue above $200 million for 6th consecutive quarter at $202 million as Quick Hit Slots and 88 Fortunes delivered record quarterly $206 $202 revenues; saw Jackpot Party stabilizatio
Slide 10: Progressing on Key Strategic Initiatives for Sustainable Growth
Progressing on Key Strategic Initiatives for Sustainable Growth Key 1Q25 SciPlay Highlights SEAMLESS AND INTEGRATED ACROSS GAMES • Outpaced the social casino market for over 3 consecutive years and counting o Continuing to enhance monetization through Live Ops and learnings across portfolio of games
Slide 11: Strong Performance Supported by Record 1PP Game Launches
Strong Performance Supported by Record 1PP Game Launches IN $MILLIONS Revenue AEBITDA Key iGaming Highlights $77 $74 • Revenue of $77 million driven by continued market $27 expansion and content launches $25 o Lightning Box and ELK GGR increased 15% and 9% respectively YoY with strong performance fr
Slide 12: Fueling iGaming Growth Through Content Roadmap
Fueling iGaming Growth Through Content Roadmap 1H25 Roadmap WILLY WONKA and all related characters and elements © & TM Warner Bros. Entertainment Inc. © 2025 LIGHT & WONDER 12
Slide 13: Financials
Financials © 2025 LIGHT & WONDER 13
Slide 14: Continued Operational Momentum in 2025
Continued Operational Momentum in 2025 IN $MILLIONS Key Highlights Consolidated Consolidated • Achieved 2% YoY Consolidated Revenue growth in the Revenue AEBITDA(1) quarter, driven by Gaming and iGaming segments o Gaming segment uptick provided from growth in each business line $774 $756 $311 o SciP
Slide 15: Optimized Capital Structure Driving Opportunities for Growth
Optimized Capital Structure Driving Opportunities for 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.
Slide 16: Generated Strong Free Cash Flow
Generated Strong Free Cash Flow(1) IN $MILLIONS 1Q25 1Q24 Key Highlights Net cash provided by operating activities $ 185 $ 171 • Free Cash Flow(1) was $111 million in the Less: Capital expenditures (61) (66) quarter, up 19% compared to $93 million in the prior year period primarily due to strong ear
Slide 17: Appendix
Appendix © 2025 LIGHT & WONDER 17
Slide 18: 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 19: 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 20: Reconciliation of Consolidated AEBITDA 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 25. © 2025 LIGHT & W ONDER 20
Slide 21: Reconciliation of Adjusted NPATA and Adjusted NPATA Per Share
L&W Reconciliation of Adjusted NPATA and Adjusted NPATA Per Share $ $ (1) (2) (2) Note: Unaudited, U.S. Dollars in millions. (1) Includes $3 million in impairment charges for the three months ended March 31, 2025 © 2025 LIGHT & W ONDER 21 (2) Refer to the Adjusted NPATA definition above for a descri
Slide 22: Reconciliation 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 23: Reconciliation of Net Cash Provided 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 $10 million collected for the three months ended March 31, 2025 related to Management designated restricted funds associated with certain Dragon Train game sales
Slide 24: Reconciliation of Consolidated AEBITDA Margin
L&W Reconciliation of Consolidated AEBITDA Margin Note: Unaudited, U.S. Dollars in millions. (1) Refer to the reconciliation of Consolidated AEBITDA included in the table titled "L&W Reconciliation of Consolidated AEBITDA, AEBITDA from Discontinued Operations and Combined AEBITDA” for the periods pr
Slide 25: Reconciliation of Earnings 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 25