Light & Wonder Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Barry Jonas - Truist Securities - Analyst : Guys, I was wondering if you could talk more about how the Dragon Train mitigation efforts are going for both the domestic and international markets.

Question: David Katz - Jefferies - Analyst : I just wanted to follow on to that and you talk about sort of the timing of new intros particularly in the premium categories. Specifically, if we could get maybe some update on Huff N' Puff, which is, again, we've heard some stuff about out in the market.

Question: David Fabris - Macquarie Research - Analyst : Look, I was wondering if you could comment on discussions with customers in the North American market at an industry level? I mean, firstly, can you provide any insights on customer budgets? I guess I'm curious to understand where the volumes are sustainable at current level. And then secondly to that, just within gaming off, there's been a lot of debate whether premium gaming ops are fully penetrated at casinos. So your thoughts on whether this can increase or maybe it reduces as part of the floors going forward?

Question: Rohan Gallagher - Jarden - Analyst : Matt, I'll like to all the Neste on the call. I was going to ask about car allocation, but in the results just released, you provided two new pieces of guidance, I suppose, EBITDA guidance and the introduction of an NPATA guidance for FY25? Can you clarify and confirm the Q4 or unpack the moving parts associated with the Q4 AEBITDA guidance and the motivation behind the new NPATA guidance for FY25, please?

Question: Ryan Sigdahl - Craig-Hallum - Analyst : (inaudible) When wanted to circle back to Dragon Train quick. When should we expect the second iteration of that? And how do you feel about the pipeline going into 2025? Yes, I'll start with the pipeline broadly. Like I said, we're a diverse organization with lots of games, lots of franchises, Drive Train was one of 130 that we make. Annually, we've made over 1,000 games in the last years. So that's what we do. And what you're investing in, when you invest in Light & Wonder is a platform, an R&D organization that can continue to build great games after quarter across a diverse set of markets and a diverse set of franchises. Dragon Train the original, is clearly, again, the players wanted to play and customers wanted to buy, and that's what we're about building. What was contested in Dragon Train was a very narrow part of the game. So we're actively working on building number of different variations of Dragon Train for the portfolio. We won't tip our hand exactly to when we're going to launch those gains. Here publicly, we know many of our competitors dial into these calls. So we'll keep our cards close to our chest on that. But it is a franchise that will be in the market that competitors will have to compete with going forward. We see this as being the type of franchise like Dancing Drums like Huff N' Puffs, like Quick Hits, that will be a sustainable contributor to our organization over the long term. So yes, you'll see it back in the portfolio in short order here. and we're excited about that. But I just want to underscore the fact that we're more than just Dragon Train. We are an organization that's decades old with lots of firepower when it comes to franchises, and the strong lineup of games as we roll into '2025, and we chased down that $1.4 billion guide that we've given the marketplace so many times over the last three years. So thanks for your question.

Question: Barry Jonas - Truist Securities - Analyst : I just wanted to ask about sort of medium-term international outright sales opportunities. There's regulatory stuff that's happening in Macau, and I think in the Philippines. And I believe there's like a big expansion opportunity in the UAE coming up in a couple of years. But could you give us a bit of a color on sort of like the magnitude and timing of those sort of things? And any other big events internationally that might be sort of helpful catalysts? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 9:30PM, LNW.OQ - Q3 2024 Light & Wonder Inc Earnings Call