Company: LAWIL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0000750004-25-000031
Chunk: 63

Company: Light & Wonder, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 units primarily due to the expected closure of certain LBOs in the U.K., removals in Greece and the reduction of certain low-yielding units in Latin America.

33

Gaming Machine Sales

Gaming machine sales revenue increased primarily due to higher U.S. and Canada unit shipments.

The following table summarizes Gaming machine sales changes:

Three Months Ended March 31,Variance202520242025 vs. 2024U.S. and Canada unit shipments:Replacement units5,398 4,296 1,102 26 %Casino opening and expansion units371 141 230 163 %   Total unit shipments5,769 4,437 1,332 30 %International unit shipments:Replacement units2,998 3,711 (713)(19)%Casino opening and expansion units1,003 1,548 (545)(35)%   Total unit shipments4,001 5,259 (1,258)(24)%

Operating Expenses and AEBITDA

Operating expenses for the three months ended March 31, 2025 increased by $14 million, as compared to the corresponding prior year period, primarily due to $12 million in higher salaries and benefits (including stock-based compensation), $6 million in higher D&A and $5 million in higher restructuring and other costs (“R&O”), partially offset by lower cost of revenue.

AEBITDA increased by $22 million, which is primarily related to increased revenue. AEBITDA as a percentage of revenue (“AEBITDA margin”) increased by 2 percentage points to 51% for the three months ended March 31, 2025, driven by a combination of a more favorable revenue mix and margin enhancements initiatives.

SCIPLAY

Our SciPlay business segment is a leading developer and publisher of digital games on online platforms. SciPlay operates primarily in the social gaming market, which is characterized by gameplay online or on mobile devices that is social, competitive and self-directed in pace and session length. SciPlay generates a substantial portion of its revenue from in-app purchases in the form of coins, chips and cards, which players can use to play slot games, table games or bingo games. Players who install SciPlay’s social games typically receive free coins, chips or cards upon the initial launch of the game and additional free coins, chips or cards at specific time intervals. Players may exhaust the coins, chips or cards that they receive for free and may choose to purchase additional coins