Light & Wonder, Inc. Reports Fourth Quarter and Full Year 2023 Results

Achieved Record Full Year Results Driven by Double-Digit Growth across All Businesses

Delivered 11 Consecutive Quarters of Consolidated Revenue Growth with Increase of 13% in the Quarter and 16% for the Full Year

Healthy Balance Sheet and Strong Financial Profile 

Returned $170 Million of Capital to Shareholders through Share Repurchases during 2023

 LAS VEGAS — February 27, 2024 — Light & Wonder, Inc. (NASDAQ and ASX: LNW) (“Light & Wonder,” “L&W,” “we” or the “Company”) today reported results for the fourth quarter and fiscal year ended December 31, 2023.

We closed the year with momentum and delivered our 11^th consecutive quarter of consolidated revenue growth and sixth consecutive quarter of double-digit growth year-over-year. Consolidated revenue in the quarter grew 13%, driven by strong performance across all our businesses, while we maintained strong margins:

• Gaming revenue increased to $496 million, up 13% compared to the prior year period, primarily driven by another quarter of robust Gaming machine sales growth, which increased 31% globally, coupled with continued strong momentum in Gaming operations.
• SciPlay revenue rose to $204 million, a 12% increase from the prior year period, breaking a quarterly revenue record for the sixth consecutive quarter, driven by the core social casino business, which once again delivered strong payer metrics and outpaced the market and gained share.
• iGaming revenue increased 13% to $70 million reflecting continued growth momentum in the U.S. and international markets.

Full year consolidated revenue increased 16% to $2.9 billion delivering record results, which showcased our strong financial performance, execution on our growth strategy and transformation, and continued advancement towards our long-term financial targets.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “2023 was a banner year for Light & Wonder. Our businesses delivered double-digit growth across the board throughout the year, enabled by strategic investments and strong execution. We consistently leverage a differentiated product strategy and plan to capitalize on the significant growth opportunities ahead of us. I am thrilled with the momentum we continue to see in the business, and with our winning mentality, experience, and talent in place, we are well-positioned to continue our growth trajectory. I want to congratulate our team on a successful year and know the best is yet to come.”

Oliver Chow, Chief Financial Officer of Light & Wonder, added, “We continue to see healthy trends in the business and were able to capitalize on many of the opportunities presented to us in 2023 to deliver strong top- and bottom-line growth, both in the quarter and for the full year. Our teams continued to deliver quality earnings with improved metrics over the course of 2023. Moving forward, we will focus on driving sustainable growth and executing against our balanced and opportunistic capital allocation strategy with discipline, driving value for all stakeholders.”

LEVERAGE, CAPITAL RETURN AND STRATEGY UPDATE

• Principal face value of debt outstanding⁽¹⁾ of $3.9 billion, translating to net debt leverage ratio⁽²⁾ of 1x as of December 31, 2023, despite the cash outflow required to complete the SciPlay merger. Our net debt leverage ratio decreased 0.2x from December 31, 2022, and remained within our targeted net debt leverage ratio⁽²⁾ range of 2.5x to 3.5x.
• Returned $25 million of capital to shareholders through the repurchase of approximately 3 million shares of L&W common stock during the quarter and $170 million or 2.4 million shares during 2023. Since the initiation of the program, we have returned $575 million of capital to shareholders through the repurchase of approximately 9.4 million shares of L&W common stock, representing 77% of total program authorization.
• Repriced our Term Loan B in January 2024 reducing our interest rate by 35 basis points, resulting in a reduction in annualized interest costs of approximately $8 million.
• SciPlay merger integration completed successfully, with the Company strengthening its cross-platform strategy through synergistic game development processes across all businesses.

(1) Principal face value of debt outstanding represents outstanding principal value of debt balances that conforms to the presentation found in Note 15 to the Consolidated Financial Statements in our December 31, 2023 Form 10-K.
(2) Represents a non-GAAP financial measure. Additional information on non-GAAP financial measures presented herein is available at the end of this release.

SUMMARY RESULTS

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. We have reflected our former Lottery business (disposed during the second quarter of 2022) and Sports Betting business (disposed during the third quarter of 2022) (collectively referred to as the “Divestitures”) as discontinued operations.