Both companies' revenue hit new heights in Q2, building on record results in Q1 for the respective areas. In Q2, L&W's core gaming division also saw revenue growth, driven by increased sales in North America and Australia.

In terms of Australia, L&W moved forward with a secondary offering on the ASX in Q2. L&W shares have been traded on the ASX for more than AU$1.00bn (£514m/€598m/US$656m) thus far.

Resolving the SciPlay acquisition in the fourth quarter?

Increase in Q2 across all gaming categories

Annual comparisons are affected by lottery sales.

How did H1 go for Light & Wonder?

Approaches to the CFO transition

Close of SciPlay transaction anticipated for Q4
In addition, L&W announced in Q2 their intention to acquire the remaining public shares of SciPlay in order to capitalise on the company's growth. A deal worth $422 million (£331 million or €385 million) was announced in May and re-enters SciPlay's L&W division.

Secretary Matt Wilson of Light & Wonder
CEO Matt Wilson claims that Light & Wonder is unique among its competitors due to the breadth and depth of its asset base. The company presently owns 83% of the economic stake in the social gaming company and 98% of the voting stock. The acquisition, according to L&W CEO Matt Wilson, is nearing completion and is expected to finalise before the year ends.

During L&W's earnings call, Wilson expressed his excitement over the announcement. "We have reached a final deal. We anticipate its completion in the fourth quarter, but this marks the final major achievement in our efforts to streamline the platform.

Our unique mix of assets—the land-based business, the leading igaming position, and the fastest growing social casino company—makes us stand out from the competition. Reintroducing SciPlay to the family meant realising its full potential in creating the most groundbreaking items ever.

Across the board, Light and Wonder saw revenue growth in Q2.
Three months ending June 30th, group revenue was $731 million, an increase of 19.8 percent year over year. All three of L&W's business divisions contributed to this growth.

Services accounted for over $496 million in revenue, while product sales made up the other $235 million. 

Fantasy & Mysteries Frankenstein
The gaming industry maintained its dominance in Q2, with sales of gaming machines up 41% year-on-year and revenue increasing 20.8% to $471 million. Revenue from gaming systems increased by 20.0% and that from table items by 34.00%, while sales of gaming machines increased by 41% for L&W.

Regarding SciPlay, the company's revenue hit $190 million, an increase of 18.8 percent from the previous year. This, according to L&W, is due to the core social casino business's outstanding payer metrics, market outpacement, and share gains.

Another milestone for L&W was revenue of $70 million, which came from the igaming sector, which increased by 16.7 percent. Revenue was 32.0% higher, which the company attributed to sustained development in the US. As L&W gets ready to start their live online casino in Michigan during the second half of the year, subject to regulatory approvals, this will probably go up again.

An impact on year-on-year comparisons in Q2 from the lottery sale
Spending in Q2 came to $618 million, a 9.6 percent increase over Q1. With the exception of restructuring, L&W increased spending across the board. The primary expense category, amounting to $203 million, was selling, general, and administrative. 

Scientific Experiments
L&W recorded $93 million in other finance-related expenses last year, which meant that their pre-tax profit from continuing operations reached €20 million. They also sold the lottery business and the Scientific Games name. In comparison, the same period in 2022 saw a loss of $140 million.

After deducting $15 million in income tax, the company had a net profit of $5 million, down from a $150 million deficit the previous year. At $281 million, adjusted EBITDA was 32.6% higher as well.

The data make different reading when ceased operations are included, though. In April of last year, L&W sold its lottery operation to Brookfield operation Partners for $5.80 billion.

Third quarter net profit from ceased operations for the previous year was $3.26 billion. For this reason, the year-on-year comparison for 2023 reads $1.0m net loss compared to $3.29bn profit last year, after deducting $6.0m in net profit from non-controlling interest this quarter.

First half revenue hits $1.40 billion
Moving on to the first half and the effects of Q2 on L&W's performance up until June 30th, revenue reached $1.40 billion. This was an increase of 18.3% above $1.18bn the prior year.

Igaming brought in $134 million, SciPlay $376 million, and gaming $890 million, all up 19.5%. Overall, sales of products brought in $427 million, while sales of services brought in $973 million.

Finance costs increased $169 million, while operating costs climbed 8.0% to $1.19 billion. There was a 46% increase in pre-tax profit from continuing operations to $46 million from $213 million the previous year.

After deducting $14 million in taxes, L&W's net profit from continuing operations came to $32 million, a marked improvement from the $217 million loss it suffered last year. Additionally, adjusted EBITDA jumped 22.8% to $529 million.

The net profit for the previous year was $3.54 billion, excluding ceased activities. The year-on-year comparison for 2023 was $21 million in net profit compared to $3.32 billion in profit last year, after deducting $11 million in net profit from non-controlling interest this quarter.

"Our reported numbers continue to validate the investments that we've made in our business and demonstrate the significant progress we are making towards our long-term targets," Wilson said of the company's financial situation. 

"Our three businesses have grown top and bottom lines by double digits this year, and we've reduced leverage, generated strong cash flows, and had an outstanding second quarter as a result."

With this, James will be leaving his position as chief financial officer at Light & Wonder.
As of the end of the second quarter, Connie James has served as L&W's chief financial officer. Her resignation will be official by August's end, as announced last month.

Cessation of Employment L&W CFO CONNIE JAMES IS READY TO RETIRE.
As of right now, L&W's senior VP of corporate finance, Oliver Chow, will serve as interim chief financial officer. While the search for a permanent replacement continues, he will step in until then. 

Speaking about his time here, James expressed his pride in being a member of the varied and skilled team and in the many accomplishments they achieved. Our transformation of the company has been fruitful, and we are now in a strong position thanks to our balanced budget and well-thought-out plan for allocating resources. 

The sustained expansion in the second quarter is evidence of the laser-like concentration on execution that characterises our company. Going forward, L&W is in good hands as the premier cross-platform global games firm, thanks to its wealth of talent, sound financials, and outstanding portfolio of properties.

cide with the approaching acquisition of SciPlay.