NASDAQ$LNWO

Light & Wonder Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Light & Wonder reported strong Q1 2022 results with revenue up 26% year-over-year and significant debt reduction following the sale of the Lottery business.

Light & Wonder reported a strong first quarter with a 26% increase in revenue to $572 million. The company closed the sale of its Lottery Business for $5.6 billion, significantly reducing its debt. They also returned $140 million to shareholders through share repurchases.

  • Consolidated revenue from continuing operations increased by 26% year-over-year to $572 million.
  • The sale of the Lottery Business generated $5.6 billion in gross cash proceeds.
  • The company reduced the principal amount of outstanding debt from $8.9 billion to $4.0 billion.
  • Returned $140 million to shareholders through the repurchase of 2.4 million shares.

Headline financials

Total Revenue

$572M

Previous: $729M-21.5%
EPS (adj)

$0.26

Previous: -$0.16+262.5%
SciPlay ARPDAU

$0.74

Previous: $0.67+10.4%
SciPlay AMRPPU

$92.45

No prior period
Avg Machine Sales Price

$17.1K

Previous: $16.6K+2.9%
Free Cash Flow

$26M

Previous: -$159M+116.4%
Net Income

$26M

Previous: -$159M+116.4%
Operating Income

$40M

Previous: $81M-50.6%
Gross Profit

$113M

Previous: $463M-75.6%
Cash & Equivalents

$496M

Previous: $967M-48.7%
Total Assets

$7.95B

Previous: $7.86B+1.2%
Stock-Based Comp

$15M

Previous: $19M-21.1%

Revenue & EPS history

Light & Wonder · Revenue · Quarterly

$572M

Q1 2022-21.5%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Light & Wonder · $572M total across 3 segments · Q1 2022

  • Gaming
    $355M+45.5%
  • SciPlay
    $158M+4.6%
  • iGaming
    $59M

Forward guidance

Light & Wonder anticipates achieving a net debt leverage ratio within its target range of 2.5x to 3.5x following the completion of the sale of its Sports Betting Business, which is expected to occur in the third quarter of 2022.

Tailwinds

  • Expected to achieve a net debt leverage ratio within the target range of 2.5x to 3.5x.
  • Sale of Sports Betting Business expected to be completed in Q3 2022.
  • Significant debt reduction and refinancing completed in April 2022.
  • Annualized cash interest savings of approximately $225 million expected.
  • Focus on operations and growth strategy to drive operational excellence.

Headwinds

  • Sale of the Sports Betting Business is subject to regulatory approvals and other customary closing conditions.
  • The COVID-19 pandemic continues to impact the industry.
  • Risks related to the intended sale of the Austria Business.
  • Inability to successfully execute the new strategy and rebranding initiative.
  • Slow growth of new gaming jurisdictions and declines in the replacement cycle of gaming machines.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.1%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+0.0%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+41.5%

Q2 2017

Best reaction

-19.5%

Q1 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+1.0%-1.2%
Q4 2025-2.7%-7.6%-14.6%
Q3 2025+8.7%+22.0%+33.2%
Q1 2025-14.0%-5.3%-7.1%
Q4 2024+6.9%+7.9%-12.3%
Q3 2024-10.9%-10.0%-9.8%
Q2 2024+1.6%-0.4%+4.3%
Q1 2024-6.4%-5.9%-0.2%
Q4 2023+2.5%+7.8%+7.4%
Q3 2023+8.9%+8.9%+5.4%
Q2 2023+2.4%+3.9%+4.3%
Q1 2023+2.5%+4.4%+13.2%
Q4 2022+0.9%-0.2%-4.1%
Q3 2022+3.0%+9.2%+13.8%
Q2 2022+3.1%+8.2%-10.8%
Q1 2022+0.3%+9.2%+12.1%
Q4 2021-1.4%-5.6%-6.6%
Q3 2021-2.3%-8.8%-20.1%
Q2 2021+5.1%+9.1%+10.8%
Q1 2021-0.1%+4.3%+34.4%
Q4 2020+6.8%-1.2%-17.7%
Q3 2020-0.2%-1.2%+7.6%
Q2 2020+5.0%+5.8%+21.7%
Q1 2020-11.4%-10.6%+27.4%
Q4 2019-16.4%-17.6%-83.7%
Q3 2019+20.6%+16.6%+5.5%
Q2 2019+0.5%-1.7%-9.6%
Q1 2019+8.6%+6.6%-3.5%
Q4 2018+9.8%+11.5%-19.9%
Q3 2018+4.0%-4.9%-20.9%
Q2 2018-17.7%-27.6%-36.9%
Q1 2018-3.4%-3.1%+11.1%
Q4 2017-12.1%-12.5%-9.6%
Q3 2017+1.7%+1.4%+11.7%
Q2 2017+41.5%+44.1%+29.4%
Q1 2017+3.7%-0.4%+4.1%
Q4 2016+7.4%+3.1%+12.9%
Q3 2016+0.9%+7.0%+31.3%
Q2 2016-11.8%-13.1%-12.6%
Q1 2016-6.7%
Q4 2015+38.7%
Q3 2015-18.8%
Q2 2015-15.9%
Q1 2015-4.8%
Q4 2014-10.6%
Q3 2014+22.9%
Q2 2014-2.7%
Q1 2014-19.5%
Q4 2013+18.0%
Q3 2013+4.1%
Q2 2013+7.8%
Q1 2013-6.2%
Q4 2012-6.9%
Q3 2012-16.2%
Q2 2012-19.4%
Q1 2012+2.4%
Q4 2011-15.8%
Q2 2011-15.8%
Q3 2011+6.3%
Q1 2010-0.4%
Q1 2011+3.4%
Q4 2010+5.5%
Q4 2008+5.5%
Q2 2010+5.5%
Q3 2010-1.1%
Q3 2009-1.1%
Q2 2009-4.7%
Q4 2009-4.7%

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