Light & Wonder: 2023 Financial Insights

Light & Wonder is a leading global company specializing in the development of innovative games and gaming technologies for casinos, online platforms, and social media. As one of the most influential companies in the gaming industry, Light & Wonder is actively expanding its portfolio, offering solutions for casino operators and creating games and technologies that attract millions of players worldwide.

The Light & Wonder Board of Directors is composed of experienced professionals, each with significant expertise in technology, gaming, and finance. The company’s leadership is headed by key figures such as the President and CEO, whose experience and vision play a central role in shaping the company’s strategy. These leaders have extensive experience working for some of the world’s largest companies, which helps Light & Wonder maintain its leadership position in the market. As of 2023, Light & Wonder employs more than 5,000 people worldwide. The company’s employees are located in various countries, and their numbers continue to grow as the business expands and enters new markets.

Mergers, Acquisitions, and Subsidiaries

In recent years, Light & Wonder has conducted several significant mergers and acquisitions, which have contributed to the expansion of its product portfolio and an increased market share. Light & Wonder’s subsidiaries specialize in game development, gaming platforms, and casino technologies. These subsidiaries play a crucial role in achieving Light & Wonder’s strategic goals, allowing the company to remain competitive and adapt to changing market conditions.

Company Strategy

Light & Wonder’s strategy focuses on strengthening its position in the global market through innovation, strategic partnerships, and expanding its product range. The company actively invests in developing new technologies and games that provide a unique gaming experience. Additionally, Light & Wonder is focused on expanding its presence in high-growth potential regions, such as Asia and Latin America.

Divisions

Light & Wonder is divided into several key divisions, each responsible for specific areas of the business. The main divisions include the development of games for casinos, online platforms, and social media, the production of gaming machines, and the supply of technologies for casino operators. Each division plays a significant role in implementing the company’s overall strategy, ensuring sustainable growth and competitive advantages in the market.

Financial Reporting for the 2023 Fiscal Year

In the 2023 fiscal year, Light & Wonder demonstrated steady revenue growth. The company’s total revenue amounted to $2,902 million, a 15.53% increase compared to the previous year, when revenue totaled $2,512 million. The main contributors to this revenue were the divisions involved in game development and gaming machine production. The company’s revenue showed positive dynamics, reaching $2,902 million in 2023 compared to $2,512 million in 2022 and $2,153 million in 2021. This revenue growth was driven by successful launches of new games, increased sales of gaming machines, and the expansion of the company’s presence in 

Sales by Segment

The company’s business is divided into three primary segments: Gaming, SciPlay, and iGaming. Each of these segments contributes to the overall revenue with unique products and services that cater to different markets and customer needs.

1. Gaming Segment

The Gaming segment is the largest contributor to Light & Wonder’s revenue, reflecting the company’s strong presence in traditional and digital gaming markets. This segment encompasses several key areas:

• Gaming Operations: In 2023, Gaming Operations generated $661 million, a 4.09% increase from $635 million in 2022. This segment includes the recurring revenue from gaming machines installed in casinos, which the company leases to operators, offering a steady stream of income. The modest growth reflects the mature nature of this market, with stability in well-established regions.
• Gaming Machine Sales: Sales in this sub-segment surged to $708 million in 2023, a significant 35.63% increase from $522 million in 2022. This growth was driven by the introduction of new, cutting-edge gaming machines that resonated well with casino operators. The increased demand for these innovative machines in both new and existing markets played a crucial role in this sharp rise.
• Gaming Systems: Revenues from Gaming Systems amounted to $268 million, representing a 5.10% increase compared to $255 million in 2022. This sub-segment focuses on the sale and support of integrated systems that casinos use for operations management, including player tracking, loyalty programs, and slot management systems. The consistent growth in this area highlights the ongoing demand for advanced technological solutions in the casino industry.
• Table Products: The Table Products division, which includes the sale of gaming tables, chips, cards, and related accessories, saw revenues of $213 million, up 12.70% from $189 million in 2022. This increase is indicative of a growing market for live gaming experiences, as casinos continue to invest in enhancing their table game offerings to attract high-value players.

Overall, the Gaming segment brought in a total revenue of $1,850 million in 2023, marking a 15.55% increase from $1,601 million in 2022. This segment remains the cornerstone of Light & Wonder’s business, underscoring the company’s dominance in the gaming technology market.

2. SciPlay Segment

SciPlay, which focuses on social gaming, particularly mobile and web-based games, continues to show strong performance as digital entertainment remains a popular pastime:

• Mobile In-App Purchases: This sub-segment generated $681 million in 2023, a 16.61% increase from $584 million in 2022. The growth was fueled by an expanding user base and increased spending per user, driven by effective engagement strategies, regular content updates, and new game releases.
• Web In-App Purchases and Other: Revenues from web-based in-app purchases and other related activities reached $96 million, up 10.34% from $87 million in 2022. Although smaller compared to mobile, this area still plays a significant role in SciPlay’s diversified revenue stream, with continued improvements in the web gaming experience contributing to steady growth.

Total revenue from the SciPlay segment amounted to $777 million in 2023, marking a 15.80% increase from $671 million in the previous year. This segment reflects the broader trend of rising consumer engagement in digital and social gaming environments, where Light & Wonder has positioned itself as a leader.

3. iGaming Segment

The iGaming segment, which includes online casino games and other digital wagering platforms, is another critical area of growth for Light & Wonder:

• iGaming Total Revenue: In 2023, the iGaming segment generated $275 million, a 14.58% increase from $240 million in 2022. This segment’s growth is driven by the increasing legalization and regulation of online gambling in various regions, particularly in North America and Europe. The company’s ability to offer a wide range of online casino games, coupled with its strong partnerships with major online casino operators, has solidified its position in this fast-growing market.

The iGaming segment represents Light & Wonder’s strategic move to capture the evolving preferences of gamers who are increasingly engaging in online and mobile platforms. The consistent growth in this segment demonstrates the company’s successful adaptation to digital transformation in the gaming industry. Light & Wonder has never paid cash dividends on its common stock, preferring to reinvest profits into the company’s development and the achievement of long-term strategic goals.

Final Thoughts

Light & Wonder continues to demonstrate strong financial performance and active development, supported by the successful implementation of a strategy focused on innovation and global expansion. Strengthening positions in key markets, expanding the product portfolio, and diversifying revenue sources provide the company with a solid foundation for continued growth and the achievement of long-term goals.