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Highlights

  • Light & Wonder Inc. is an ASX-listed company which offers gambling products and services
  • In 1QFY24, LNW’s revenue jumped 13% YoY to USD 756 million
  • In Australia, tourist inflow has increased over the last year

Earlier known as the Scientific Games Corporation, Light & Wonder Inc. (ASX: LNW) is an American firm which offers gambling products and services, including casino management systems, shuffling machines, slot machines and table games.

In the first quarter of financial year 2024 (1QFY24), revenue of the company grew by 13% YoY to USD 756 million, backed by higher performance across all lines of business. During the reported period, adjusted EBITDA increased by 13% YoY to USD 281 million, net income increased to USD 82 million, underpinned by consistently higher margins and revenue growth, along with decrease in amortization and depreciation, restructuring and other costs.

Growth prospects for hotel and entertainment stocks

The data shared by the Australian Bureau of Statistics (ABS) on 14 May 2024 indicated that tourist inflow has increased in Australia over the past year. The data highlighted that overseas visitor arrivals grew by 20.1% annually to 1,614,830 in Australia in March 2024, while short-term visitor arrivals surged by 24.1% to 7,61,050.

According to data by ABS, in the present financial year through March 2024, arrivals have jumped 38.1% and departures grew by 40.5% annually.

Diverse attractions of Australia make it a popular destination for international tourists and increased tourism boosts demand for entertainment and hotels services substantially. The overall economic growth of the nation increases disposable income and leads to an increase in spending on leisure activities, accommodation and travel. 

Recent business update

Through an ASX update, the company notified about the change in ownership of Kalabic Vanja, Caledonia (Private) Investments Pty Limited and Korsanos Antonia.

Outlook

The company anticipates momentum to continue in 2024 on the back of appealing global product offerings that boosted game sales in North American and global markets, especially in Asia and Australia.

Further growth is expected from key hardware and content launches in LNW’s land-based and digital markets throughout the year. The unique product roadmap and targeted commercial strategy allow it to seize growth opportunities beyond its established core businesses.

Share performance of LNW

LNW shares closed 0.028% lower at AUD 141.36 apiece on 20 May 2024 with a market cap of AUD 12.74 billion. In the past nine months, LNW’s share price has increased by 22.92%, while in the last three months, it has gained 3.93%.

The 52-week high of LNW is AUD 167.05, recorded on 22 March 2024, and the 52-week low is AUD 90.00, recorded on 1 June 2023.

LNW Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 20 May 2024. The reference data in this report has been partly sourced from REFINITIV.