NASDAQ$LNWO
Light & Wonder Inc · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Reported a 63% year-over-year increase in consolidated revenue, driven by strong sequential growth across all businesses. The company progressed well on intended divestitures of lottery and sports betting businesses, maintained disciplined cost and balance sheet management, and generated $149 million of net cash from operating activities and $133 million of free cash flow. The company substantially reduced leverage in six months, paying down over $500 million in debt since October.
Scientific Games reported strong Q2 2021 results, with significant revenue growth and progress on strategic initiatives. Consolidated revenue increased by 63% year-over-year, driven by growth in Gaming, Lottery, and Digital segments. The company is focused on becoming a leading cross-platform global game company with a focus on content and digital markets, and is moving forward with planned divestitures to optimize its portfolio and deleverage the balance sheet.
- Consolidated revenue increased to $880 million, up 63% year-over-year.
- Net income was $113 million, compared to a net loss of $198 million in the prior year period.
- Consolidated AEBITDA was $383 million, up 217% compared to the prior year period, the highest in the Company’s history.
- Free cash flow was $133 million, inclusive of the $38 million FOBT recovery.
Headline financials
Revenue & EPS history
Light & Wonder · Revenue · Quarterly
$880M
Revenue by segment
Light & Wonder · $247M total across 2 segments · Q2 2021
- SciPlay$154M-7.2%62.3%
- iGaming$93M—37.7%
Forward guidance
The company is moving rapidly to execute on its vision to become a leading cross-platform global game company, accelerating efforts to de-lever and invest for sustainable growth.
Tailwinds
- Optimizing our portfolio, moving quickly on planned divestitures of both the Lottery and Sports Betting businesses.
- Investing in our largest growth opportunities, both organically and inorganically, in content and digital markets to accelerate growth.
- Evidenced by the organic investments in content R&D and a new Las Vegas iGaming studio, as well as the targeted acquisitions of Lightning Box and Koukoi Games.
- Significantly de-levering and transforming the balance sheet with meaningful progress organically.
- Reduced net debt leverage ratio by nearly a third to 7.2x since the beginning of the year.
Headwinds
- The impact of the COVID-19 pandemic and any resulting unfavorable social, political, economic and financial conditions, including the temporary and potentially recurring closure of casinos and lottery operations on a jurisdiction-by-jurisdiction basis
- Risks relating to our continuing strategic review and proposed acquisition of public SciPlay equity, including lack of assurance that the review will result in the consummation of any transaction, on any particular timetable or at all, that the review will yield additional value or that the review will not adversely impact our business, financial results, results of operations, cash flows or stock price;
- Slow growth of new gaming jurisdictions, slow addition of casinos in existing jurisdictions and declines in the replacement cycle of gaming machines;
- Risks relating to foreign operations, including anti-corruption laws, fluctuations in currency rates, restrictions on the payment of dividends from earnings, restrictions on the import of products and financial instability, including the potential impact to our business resulting from the continuing uncertainty following the U.K.’s withdrawal from the European Union
- Difficulty predicting what impact, if any, new tariffs imposed by and other trade actions taken by the U.S. and foreign jurisdictions could have on our business
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 Q2 2021
-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
| Quarter | Report date | Reaction (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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