Light & Wonder Reports Strong Q3 Performance Ahead of ASX Listing
Light & Wonder’s Recent Global Expansion
Over the past few months, Light & Wonder, a leading global developer of gaming content and hardware, has made significant strides internationally. In July, the company secured approval to launch in the UAE. By mid-August, it partnered with Betson Enterprises to mark its entrance into the Nevada market. In September, the company also announced plans to enter the gaming sector in the Philippines.
Final Earnings and Strategic Move to the Australian Exchange
Light & Wonder recently released its final earnings report as a US-listed company as it prepares to transition exclusively to the Australian Securities Exchange (ASX). CEO Matt Wilson highlighted that the ASX is a market well-suited to the gaming industry, signaling optimism for this new chapter.
Strong Third-Quarter Financial Performance
The company reported an impressive 18% growth in its third-quarter results, exceeding internal expectations. CFO Oliver Chow praised the business, emphasizing the robustness of their recurring revenue streams and describing the company as a “powerhouse” in that regard.
Integration and Growth of Grover Gaming Acquisition
A notable highlight during this period was Light & Wonder’s recent acquisition of Grover Gaming. This acquisition added 292 units to their installations, generated approximately $40 million in revenue, and led to the opening of a development studio in Raleigh, North Carolina. Wilson stated that the primary focus remains on smoothly integrating Grover into the company’s operations. The acquisition has contributed to a 5% increase in US daily revenue. Additionally, Grover is preparing for its expansion into the Indiana market.
Market Expansion and Product Deployment
Overall, Light & Wonder shipped 6,000 gaming units during the quarter and successfully entered Nebraska’s skill-games market. Wilson described feedback from the October Global Gaming Expo as overwhelmingly positive. Internationally, the results were somewhat mixed; a large order from Entain was not repeated, and Australian market share experienced a slight downturn, although growth is expected in 2026. The company continues to focus on expansion in Asia and maintains steady market shares in emerging regions.
Positive Developments in Social Gaming and iGaming Sectors
On the social gaming and iGaming fronts, significant progress has been reported in the development of SciPlay’s direct-to-consumer platform. Older titles like Jackpot Party have stabilized, while first-party iGaming content contributed to a record 16% increase in revenue. Total player wagers increased by 23%, reaching $23 billion. Although international unit sales decreased, Wilson forecasts substantial orders from the UK and Asian markets.
Financial Health and Future Outlook
CFO Oliver Chow highlighted the impact of wide-area progressive games on increasing daily revenue. The company is still experiencing cost effects from exiting the live-dealer segment, projected to continue into 2026, but the integration of Grover Gaming will help accelerate amortization. The company currently has debt approximately three times its cash flow, with $1 billion in new notes issued and $101 million spent on share buybacks.
Looking ahead, Light & Wonder plans to expand Grover’s operations, deliver video lottery terminal units to Canada, and increase international sales. Despite tariffs reducing profits by $5 million to $9 million this quarter, Wilson noted the resilience of the market, with consumer demand sustaining strong gross gaming revenues.
Summary and Future Vision
Wilson summarized the third quarter as an outstanding achievement that sets a clear and positive path into the final quarter of the year. He expressed enthusiasm for the upcoming listing on the ASX and invited shareholders and stakeholders to continue supporting Light & Wonder’s journey in the Australian market.
