Light & Wonder shares fell sharply on Thursday, 7 May, despite management’s assertion that the business has entered “the next phase” of its strategic evolution.
The stock was down 8.3% at A$102.66 (£54.69) following the publication of first-quarter results, extending its 12-month decline to 29.4%.
The supplier reported Q1 2026 revenue of $790m (£580m), a 2% year‑on‑year (YoY) increase, while adjusted EBITDA rose to $327m, up from $311m in the prior‑year period.
The supplier’s gaming arm was the biggest contributor to the group’s overall revenue, a 3% YoY increase to $512m.
Social games division SciPlay reported a 7% YoY decline from $202m to $187m, with the company saying it “remain challenged amid a mature social casino market”.
The fall was also due to a decline in Jackpot Party Casino players, though it was partially offset by average monthly revenue per user increasing.
Igaming reported an 18% YoY spike in revenue to $91m as momentum continued in the US, Light & Wonder confirmed.
Adjusted EBITDA margin for the division grew by approximately 100 basis points to 36%.
Igaming wagers processed through Light & Wonder’s platform reached a quarterly record of $29.9bn.
Net income was down 37% YoY to $52m, or $0.66 per share (down 30%), following “legal reserve contingencies associated with certain legacy legal matters”.
The supplier noted this had impacted growth by approximately 61% and 67%, respectively.
Matt Wilson, Light & Wonder president and CEO, said Q1 marked the “beginning of the next phase” of the supplier’s growth trajectory, including a content-centric operational model, deeper customer relationships and enhanced capital structure.
“We are seeing the benefits of our continued investment in studios and content, as our franchises drive strong game performance across the portfolio,” he added.
“Gaming momentum remained robust, with our North American premium installed base growing for the 23rd consecutive quarter, and Grover continued its expansion into the recently legalised Indiana market.”
CFO Oliver Chow said Light & Wonder was making “deliberate investments” in AI and infrastructure to support growth and efficiency, while Q1 results “reflect continued margin expansion across the businesses and scaling cash flow, driving the improving cash conversion profile of our business”.
In its previous results announcement, Wilson described AI as a “significant growth enabler” for Light & Wonder, while stressing the technology could not replace the firm’s unique data capabilities.
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The post Light & Wonder shares slide as first quarter revenue inches up 2% first appeared on EGR Intel.
CEO Matt Wilson says Q1 marks the “beginning of the next phase” of the firm’s growth trajectory as revenue hits $790m, but investors remain unconvinced
The post Light & Wonder shares slide as first quarter revenue inches up 2% first appeared on EGR Intel.