As a result, Light & Wonder will now give more serious consideration to whether it should proceed with a secondary equity listing on the Australian Securities Exchange (ASX) after the company secured the backing of its Board.
Light & Wonder Mulls Australian Stock Exchange Listing
The recent developments come more than two months after the company confirmed that it was interested in the prospect. However, the listing is just a secondary one, meaning that NASDAQ in New York will still remain the primary listing for the company. In a lengthy communique, Light & Wonder outlined the opinion of the board on this potential development:
The Board believes there are substantial potential benefits for the Company and its shareholders in pursuing a secondary listing on the ASX, including enhancing the Company’s profile in Australia, one of the leading markets for the Company’s Gaming business, and providing the Company access to new long-term Australian institutional investors that would complement its strong existing base of shareholders in the US and Australia.
Light & Wonder Board of Directors
The prospect of a potential listing was present as part of the company’s first-quarter results for the period ended on March 31, 2023. The company has been toying with the idea of ASX listing for a very long while now. Light & Wonder considered a similar move back in 2021 when the firm was still known as Scientific Gaming.
There are several reasons why this is the case. Light & Wonder has been doing well since it transformed itself and spun off Scientific Games as an independent lottery games operation. In the meantime, the business remains well-established in the Australian market, and its products are known to local businesses and professionals, which can make it a strong bet on the stock market. However, further deliberations would be necessary before a listing is made official.
Strong Financials During First Quarter of 2023
The company saw very strong performance during the first quarter of the year, with gaming revenue increasing by 18% to $419 million. Gaming machine sales went up by 53% and SciPlay managed to bring in record revenue of $186 million, or an 18% gain on the previous period.
Light & Wonder also reported record quarterly revenue in the iGaming vertical reaching $65 million, up 10% from last year. The milestones were welcomed by both Light & Wonder CEO and President Matt Wilson and Company CFO Connie James.
Wilson said that the company was beginning 2023 on a very strong footing and that its double-digit revenue growth was likely to carry on in the next quarters. The company continues to develop and deliver a “robust product roadmap,” Wilson added, with the company continuing to acquire new talent, technology, and solutions to differentiate itself.
James was similarly happy with the results. The CFO noted that the company continues to bank on strong growth opportunities and deliver results that impact Light & Wonder’s financial profile positively.