Light & Wonder, Inc. Reports Fourth Quarter and Full Year 2024 Results

Delivered Record Full Year Consolidated Revenue with Double-Digit Growth of 10% Year-Over-Year

Added 850+ North American Gaming Operations Units Sequentially and 2,700+ Unit Expansion Year-Over-Year

Returned $462 million of Capital to Shareholders through Share Repurchases during 2024

Announced Strategic Acquisition of Grover Gaming’s Charitable Gaming Business

LAS VEGAS — February 25, 2025 — 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, 2024.

We closed another strong year, delivering record financial and operational performance and continuing our advancement toward our 2025 financial targets. For the full year 2024, the Company delivered:

• Record full year consolidated revenue of $3.2 billion, increasing 10%, with annual growth driven by continued strong performance across all businesses.
  • Gaming revenue increased to $2.1 billion, up 12%, driven by continued momentum in Gaming machine sales, which increased 22% primarily on market share gains in North America and Australia, coupled with Gaming systems growth of 13% driven by our innovative hardware and software solutions, and North American Gaming operations unit expansion driving 4% growth in Gaming Operations fueled by the improving performance of our diverse portfolio of hit franchises.
  • SciPlay revenue rose to $821 million, up 6%, and once again outpaced social casino market revenue growth, delivered record payer metrics and expanded our direct-to-consumer high margin revenue channel, which was approximately 11% of total SciPlay revenue.
  • iGaming revenue increased 9% to $299 million reflecting continued growth momentum in the U.S. and international markets driven by our industry-leading platforms and strong content launches.
• Robust double-digit earnings growth with Operating income growth of 29%, Consolidated AEBITDA⁽¹⁾ growth of 11%, and Adjusted NPATA⁽¹⁾ growth of 24%.
• Returned $462 million to shareholders through share repurchases as we fully completed our initial $750 million share repurchase program and completed approximately 29% of the new $1 billion share repurchase plan authorized in June 2024. Since initiation of the program in March of 2022, the Company has returned over $1 billion or 14.3 million shares or 15% of total outstanding shares prior to the commencement of the programs.

Matt Wilson, President and Chief Executive Officer of Light & Wonder, said, “We ended a strong 2024 with continued double-digit revenue and earnings growth for the year. The Gaming machine sales share gains in North America and Australia this year are a testament to our R&D investment, commercial strategy and robust product roadmap. Furthermore, we have also realigned studio needs, adding more talent and expanding existing studios. Our recently announced strategic acquisition of Grover Gaming’s charitable business enhances our cross-platform strategy and presence in regulated land-based markets, giving us a broader distribution base for our vast content library and accelerating our drive for sustainable future growth.”

Oliver Chow, Chief Financial Officer of Light & Wonder, added, “Our healthy financial foundation gives us flexibility to deploy capital where it best drives long-term value consistent with our capital deployment framework. We expect that the acquisition of Grover Gaming’s charitable business will contribute to our expansive recurring revenue base and is complementary and synergistic to our high margin and cash generative business, enhancing our growth profile and cross-platform strategy. We continue to see tremendous value in our shares and have executed a meaningful $462 million in share repurchases in 2024. We believe our healthy earnings growth and further optimization of our capital structure will continue to serve us well and provide stability as we expand the business globally.”

LEVERAGE, CAPITAL ALLOCATION AND BUSINESS UPDATE

• Principal face value of debt outstanding⁽¹⁾ was $3.9 billion, translating to a net debt leverage ratio⁽²⁾ of 0x as of December 31, 2024, a 0.1x decrease from December 31, 2023, and remaining within our targeted net debt leverage ratio⁽²⁾ range of 2.5x to 3.5x.
• Returned $243 million of capital to shareholders through the repurchase of approximately 6 million shares of L&W common stock during the quarter and $462 million or 4.8 million shares during 2024.
• Amended our credit agreement on February 10, 2025. The amendment, among other things, (i) provides for increased revolving commitments of $1.0 billion, replacing the existing revolving commitments of $750 million, (ii) extends the maturity of the revolving commitments to the earlier of (x) February 10, 2030 and (y) such earlier date that is 91 days prior to the maturity of our existing term loans (scheduled to mature on April 14, 2029) and existing notes (the earliest maturity of which is scheduled for May 15, 2028), solely to the extent more than $500 million of such term loans and/or such applicable notes are outstanding on such earlier date, and subject to us having sufficient liquidity to repay such term loans and/or applicable notes at such time and, (iii) reduces the applicable margin for the revolving loans by up to 50 basis points.
• Announced strategic acquisition of Grover Gaming’s charitable business on February 18, 2025 for an upfront consideration of $850 million, subject to customary purchase price adjustments, that will be funded with the combination of existing cash and incremental debt financing. Grover Gaming is a leading provider of electronic pull-tabs distributed over five fast-growing U.S. states: North Dakota, Ohio, Virginia, Kentucky and New Hampshire. The transaction is expected to close during the second quarter of 2025, subject to required regulatory and other approvals and customary closing conditions.
• On February 23, 2025, the Company entered into an agreement to pay $72.5 million to resolve the antitrust claims related to its automatic card shuffler business brought in TCS John Huxley America, Inc., et al. v. Scientific Games Corporation, et al., in 2019. The antitrust claims were based on alleged conduct beginning fifteen years ago in 2009. While the settlement resolves the disputed claims, the Company has not admitted any liability in this matter.
• First Quarter 2025 business update — Based on the timing dynamics of Game Sales and high-return investment opportunities, both of which are expected to drive enhanced organic growth as the year progresses, we expect first quarter 2025 year-over-year Consolidated AEBITDA⁽²⁾ growth to be in the low double-digits.
• ASX Listing Review — Light & Wonder is approaching the second anniversary of its successful secondary listing on the Australian Securities Exchange (“ASX”), which now represents approximately 30% of total ownership. The Company remains focused on enhancing the liquidity and market capitalization of its ASX listing, and as part of this will be considering both a dual primary and a sole listing on the ASX. L&W has engaged advisors (Jarden Australia and Goldman Sachs) to evaluate potential strategies to achieve this objective. L&W will be seeking feedback from key stakeholders to ensure an optimal outcome for L&W shareholders.

“The ASX is a premier exchange with a strong history of supporting global gaming companies, offering access to a deep and liquid market of sophisticated investors and industry participants with a comprehensive understanding of the gaming sector. We look forward to engaging with the market and our existing shareholders to further elevate the profile of our ASX listing,” said Jamie Odell, Chair of the Light & Wonder Board of Directors.