Light & Wonder Inc Q4 2024 Earnings Call Transcript

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

Question: Barry Jonas - Truist - Analyst : As we enter the year where you've guided to hit $1.4 billion in AEBITDA, can you talk through how you see the cadence in getting there this year?

Question: Matthew Ryan - Barrenjoey - Analyst : Just had a question on Gaming ops. We saw some really strong additions in Q4, and I think we're seeing some pretty good numbers from some of your new releases, Monopoly Express and Hard Hat addition. I'm just trying to think about how we think that installed base might change in Q1 in light of some of the conversions that you might be seeing on the Kascada Dual Screen and also that strength that's coming through from new product?

Question: Chad Beynon - Macquarie - Analyst : I wanted to ask you 2 parter on margin. So the first part on Q4 margin for the gaming segment, nice growth year-over-year. Wondering if you could talk about that in terms of if the growth came from mix or controllable that you made within the organization. And then the segue from that is for '25, given some of the decisions that you made around live dealer and cost containment comments in the past, how are you thinking about margins overall for the company in '25?

Question: Andre Fromyhr - UBS - Analyst : Just the question or sort of a 2-part question around the drivers of your iGaming growth and outlook. You talked about Huff N' Puff being your most successful launch into iGaming. I was wondering how you think about the game pipeline into that channel and how you train that off against impact that might be having on the land-based business as you grow those franchises? And I'm just wondering if you could comment on any new feedback you've got on potential legalization further in the U.S.

Question: David Katz - Jefferies - Analyst : Oliver, can you give us just a little bit of color around -- we got the EBITDA right? But there's a lot of sort of moving parts within the business and expected acquisition. How are we thinking about growth in cash flow, either on an operating basis or free cash flow? How do you think about those rolling forward the next year or two in the model?

Question: Rohan Gallagher - Jarden - Analyst : With respect to iGaming in FY24, you've obviously had payments that you had to make to third parties in terms of exit. And then also, you've been investing in Live Casino. If you were normalizing that to sort of set up a base for growth in FY25, what sort of impact would that be? And associated with that, with the decision to exit Live Casino, what sort of addressable market reduction do you see as a result of that strategic decision, please?

Question: Rohan Gallagher - Jarden - Analyst : Appreciate that. And if I'm just a bit cheeky to ask a follow-up question. Obviously, the supply chain and Anthony Firmani has done a fantastic job. Here in Australia, the only certainty is uncertainty around tariffs and steel, et cetera, what are your early indications around supply chain potential challenges, not just for the industry, but for your [good sales?] REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 9:30PM, LNW.OQ - Q4 2024 Light & Wonder Inc Earnings Call

Question: Rohan Gallagher - Jarden - Analyst : Congratulations on the results.

Question: Ryan Sigdahl - Craig-Hallum - Analyst : I want to move down to Brazil. So launched at the start of this year. I know it's quite early there. But I guess anything you're seeing and you'd like to specifically call out? And then specifically, curious if there's more interest kind of where you're seeing better traction with on the technology side, platform center of the iGaming content side?

Question: Rohan Sundram - MST Marquee - Analyst : Just one for me. Matt, how would you describe the slots demand environment at present? And would your Gaming results suggest any potential softness in that Q4 is what your major competitor called out?

Question: Jeffrey Stantial - Stifel - Analyst : You both touched on some of the ideas and tailwinds to ARPDAU growth in SciPlay, which grew again in a flat market during Q4. As you think about the puts and takes for growth here looking out to '25 and beyond, I'm curious just how you think about sort of competitive intensity in the sector and that's both from the legacy providers as well as some of the newer tangential verticals such as sweepstakes that are growing rapidly in absence of regulation? And just as a corollary to that, our sweet take is a vertical that you would consider entering given the similarities to, call it, core social in that freemium model. Just any color there would be great.

Question: Adrian Lemme - Citigroup - Analyst : Look, I just had a question on the North American lease market. My understanding is it grew by about 8,500 units last year or about 5%. Can you give us some thoughts on how you're thinking that it will grow this year considering the outlook for casino openings as well as how you think customers are thinking about the mix of leased versus owned?

Question: Justin Barratt - CLSA - Analyst : The question I just wanted to ask, you made a couple of opening comments, Matt, around your potential decision around where you're listed and potentially doing a more formal dual listing or even a solo listing on the ASX. Just wanted to understand your considerations in making that decision and roughly when you think you might have a final decision on that [by?] REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2025 / 9:30PM, LNW.OQ - Q4 2024 Light & Wonder Inc Earnings Call