Company: LAWIL
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000750004-25-000016
Chunk: 77

Company: Light & Wonder, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 77
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RPPU.

Payer conversion rates continue to be elevated due to consistent payer interaction with the games as a result of SciPlay’s focus on introducing new content, features and live events in their games.

Operating Expenses

The increase in operating expenses is primarily driven by higher marketing expenses of $17 million. Cost of revenue remained relatively flat due to the higher margin on direct-to-consumer revenue, which was largely offset by the increase in cost associated with revenue growth.

AEBITDA

AEBITDA increased by $29 million, and AEBITDA margin increased by 2 percentage points to 33%, primarily due to revenue growth and higher margins on our direct-to-consumer revenue as discussed above, partially offset by the increase in operating costs, which was primarily related to an increase in marketing expense.

iGAMING

Our iGaming business segment provides a comprehensive suite of digital gaming content, distribution platforms, player account management systems, as well as various other iGaming content and services. The majority of our revenue is derived from casino-style game content, including a wide variety of internally developed and branded games as well as popular third-party provider games. These games are made available to iGaming operators via content aggregation platforms, including Open Gaming System, remote gaming servers and various other platforms. We also provide our OPS, a player account management system which offers a wide range of reporting and administrative functions and tools providing operators full 

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control over all areas of digital gaming operations. The majority of our iGaming revenue is based on a Participation model. Generally, we host the play of our game content which is integrated with the online casino operators’ websites.

Current Year Update

We continue to expand our customer base and capitalize on growth in the North American and European markets by leveraging our industry leading platforms, content and solutions, as well as investing in our ability to scale our own original U.S. land-based content offering. In the second quarter of 2024, we went live in Rhode Island, increasing our U.S. presence to seven states, and we are well positioned to enter additional states as their legislatures authorize online gaming.

The Company commenced the process of discontinuing Live Casino operations. This decision reflects our commitment to reallocate resources to maximize our return on investments, and we do not expect that this decision will have a material impact on iGaming business long-term growth prospects.

Results of Operations

Overall, iGaming revenue increased by $24 million or 9% as a result of the strength of our