Light & Wonder, Inc. Reports Fourth Quarter and Full Year 2022 Results

Generated Double-Digit Consolidated Revenue Growth of 18% in the Quarter and 17% for the Full Year

Returned $413 Million⁽¹⁾ of Capital to Shareholders Through Share Repurchases

LAS VEGAS — March 1, 2023 — Light & Wonder, Inc. (NASDAQ: LNW) (“Light & Wonder,” “L&W” or the “Company”) today reported results for the fourth quarter and fiscal year ended December 31, 2022.

We completed our strategic transformation, resulting in a streamlined organization and deleveraged balance sheet, positioning the Company to strongly execute on its strategic plan and long-term financial targets.

For the full year, we delivered double-digit topline growth driven by continued momentum across our businesses and continuing expansion in high-return markets. Our full year consolidated revenue grew 17% driven by Gaming recovery approaching pre-pandemic levels and record revenues for SciPlay and iGaming with strong momentum in the fourth quarter:

• Gaming revenue increased to $438 million, up 18% compared to the prior year period, primarily driven by another quarter of robust Gaming machine sales growth of 41% and continued strong momentum in Gaming operations, systems and tables.
• SciPlay revenue rose to $182 million, a 18% increase from the prior year period, and highest quarterly revenue ever.
• iGaming revenue increased 15% and AEBITDA grew 27% from the prior year period reflecting continued growth momentum in the U.S. market.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “2022 was a pivotal year for Light & Wonder. We delivered on an ambitious and transformative plan while driving operational success and double-digit growth in our business.

We are excited about our future and see strong momentum continuing in the business in the year to come. Our industry leading talent, games and technology put us in a strong position to deliver on our product roadmap, capitalize on the enormous opportunities ahead and lead in the convergence of gaming.”

Connie James, Chief Financial Officer of Light & Wonder, added, “We are proud of the tremendous and rapid progress we have made over the past 18 months. We delivered quality earnings, setting the foundation for sustainable growth going forward as we continue to focus on delivering shareholder value.

We also returned significant capital to our shareholders, totaling $413 million⁽¹⁾ since our share repurchase program was announced a year ago. We now have a strong balance sheet and clear roadmap to advance with discipline on our balanced and opportunistic capital allocation strategy and elevate Light & Wonder’s value proposition.”

_{(1) This amount is as of February 24, 2023.}

LEVERAGE AND CAPITAL RETURN UPDATE

• Maintained net debt leverage ratio⁽¹⁾ of 3x as of December 31, 2022, within our targeted net debt leverage ratio⁽¹⁾ range of 2.5x to 3.5x.
• Returned $413 million of capital to shareholders through the repurchase of approximately 7.2 million shares of L&W common stock since initiating the program on March 3, 2022, and through February 24, 2023, representing 55% of total program authorization.

SUMMARY RESULTS

We have reflected our former Lottery business (divested during the second quarter of 2022) and Sports Betting business (divested during the third quarter of 2022) (collectively referred to as the “Divestitures”) as discontinued operations for all periods presented. Unless otherwise noted, amounts, percentages and discussion included below reflect the results of operations and financial condition of the Company’s continuing operations, which include its Gaming, SciPlay and iGaming businesses.