LNW - Earnings call transcript Q1 2022

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Operator

Good afternoon and thank you for attending today's Scientific Games First Quarter 2022 Earnings Call. My name is Sam and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. [Operator Instructions] At this time, I'd now like to turn the call over to our host, Jim Bombassei Senior Vice President of Investor Relations. Jim?

Jim Bombassei

operator. you, Thank everyone. Good afternoon,

Connie call, results we period. first today's and discuss me will operating performance XXXX CFO, Cottle; and Barry question-and-answer are quarter followed today During CEO, our James. by With a

Our call. statements under Reform Private statements include materially the results risks certain those will and call during XXXX. could Securities from These to cause contain actual today of that forward-looking statements Act involve Litigation the uncertainties discussed that differ

please uncertainties, to refer our information on regarding and For afternoon, with relating risks issued release materials our filings this this to earlier SEC. our these earnings posted the website the and call

betting consolidated liabilities discontinued for businesses sheets lottery and completed to subsidiaries, we the as the to and these of operations certain as On business Business in which the We balance sell measure had most L.P. be into quarter website. a well reflected assets sale can have definitive that in April as September with XX, comparable financial non-GAAP in and of exception sports GAAP our directly to each are presented. lottery section operations Partners found the expected as our to earnings a we businesses will our these the Investors for in Beginning reconciliation our close we the non-GAAP announced discuss non-GAAP X, the of XXXX, of XXXX, entered of business shortly. in certain consolidated Brookfield third of agreement to we measures. measure Endeavor. A also release, business all On on each reflected description statement held periods of XXXX, measure our sale

to segments: continuing include operations our combined operations. and reporting both referring Gaming disclosures results business are We continuing our discontinued iGaming. and Amounts and SciPlay three in of

the call company's historical our recorded. archived segment is website over our this the to on Investors the Relations reminder, a call will an of and be this website information. section Investor conference Supplemental are reference including in business accompanying slides I'll and results, of your review materials And turn A available now being to at Barry. earnings of presentation replay help facilitate lnw.com. As recast webcast

Barry Cottle

Thank us. joining you all for

are here are progress the excited leading game opportunity clear and The on a strategy billion-plus We are to momentum path executing are with given the and to to capabilities. seeing a capitalize are our with with leading vision global company our making Today a $XX as and across value uniquely we company. the businesses. cross-platform great be and global platforms our today, we we market positioned our is unlock transformed clear games and we unmatched a positions

and land-based, we strong fulfill cash, high-performance XX% tremendous year-over-year. progress cultivate by revenue our in toward year made We also a grew ago. we're transformation fostering in In and growth; delivering number expanding across we maximizing Our returns; number in on consolidated our markets, growing EBITDA great pillars: the number number the first just the to digital and momentum demonstrating converging our four, leading an fueling five and business. quarter, generation; that as we vision look is centered content revenues share experience business. best player increasingly number one two, increase while drive by gaming in digital and delevering and our a through we promises investment fuel franchises mobile, high-quality culture, and enabling three, cash to as a creating key the shareholder talent quickly To five, earnings platforms our made seamless and our on organic XX% vision, industry; high-growth recurring consolidated

generated share adjusted repurchases in little sheet. ago, with SciPlay, the second-highest and investment iGaming of transforming from We pay used to enhance the sale our and this We proceeds shareholder a we number recurring radically new our paydown, down proceeds. one year and gross value, balance revenue sequentially ever. and lottery in debt, our growth. A sales priority, over post we've debt billion net financial net at With achieved times, to of lottery the debt seven strength a capital digital approximately quarter ratio cash times. SciPlay milestone, And sits on transactions, refinancing which XX.X our both our achieving approximately established $X.X ratio lottery major priorities continue with peaked the and our closing X.X a its debt business, allocation now revenues, grow the year-over-year and leverage to And reduction at growing sales flexibility, leverage turns. our

achieving target We to our of to debt on X.X are our range ratio leverage X.X net times. way well

We third expect we to the subject with there of closing will which in sports the quarter, the of regulatory business, happen get our sale anticipate approvals. betting to

immediately began representing stock, of executing We repurchasing last million total of priority: capital also $XXX shares shares, approximately to a share $XXX authorized key program million for second our we and in outstanding. back shareholders. our buyback Through X.X a our on of week, March returning approximately actively X.X% and purchased million shares

small outsized acquisition billion portfolio. an also acquired casual OGS. capital-efficient leading casual have a on into Playzido, our expect that We developer a accelerates on on closed that accelerate targeted, acquired series impact to expand we $XX iGaming expansion the in And acquisitions, customized Alictus, to growth latest our our the offering game fuel content SciPlay ability and of market. their we to a

that been planning plans dynamic In on to to place in want we're macro capital environment. the say, seeing, proactively and that how executing the also and I'm navigate I addition, to addressing we've allocation proud our plan, it. to we're have contingency situation acknowledge current

was manage of One we've the done before base. and assess the pandemic, things, well our cost to actively

we in how drive years, to to taken the leveraged we've efficiencies into maintain base margin, two across a other cost last the nearly out and million the reinvested healthy R&D organization. Over $XXX our testament savings our

which us there's on continue to now helping and we be our dividends proactive proactive chain we to focus current will has we've performance. but navigate control our were environment. to as the done. paid business time Additionally, the can time of from I'll challenges will highlights we and more be and built supply There we talent, unit up execute to key do, on And the always know things

Let me begin with Gaming.

performance. This As our we North of to Wonka recovery, American from market we America seventh game was outstanding performance Dreams the franchises. Dreamer Ultimate our strong continues North our especially with to for and per cabinet XXXX of represents Portrait proven Fire installed cabinet remained strong, Willy the grew Revenue premium result day segment continue now outpace see on to momentum Link consecutive of Kascada and driven improved It ops the by Mural XX% America in continued quarter. thanks Combo strong North Coin base. premium and levels product coin-in

rich as the With Screen our content our cabinet and Ultimate and a Money the momentum continued gate proven seeing to scheduled portfolio such of see and franchise are Fire Kascada Dual Gold Link out out shortly. Double roll we numbers expect of with Fish, of launch strong to Link

units two is X-ETG off these And traditional upgrades. is year with tables sales, game every trends the above debut XXXX services critical generating average stepper strong half segment And we out Roulette gaming the player we see see times. growth and Our acquired tables game market. continued Overall, into in continue the systems, in Meanwhile our of Landmark second the our cabinet April seeing progress us in strong scaling to product strong in now great hardware back macro which giving and transactions. more the across industry year-over-year recently environment will cabinets highly of and market we roll increased momentum the iVIEW systems the over demand US of our a demand than with GGR globe, X penetrates pipeline as momentum Adam continuing resilient hardware outperforming than XXXX for to system by to units. to demand deliver our expect remains of year. levels. the XX% with And build more on and on performance for resources We're domestic-connected across on software throughout we're Cashless this strong anticipated roulette XXX

Turning were a performance the games year-over-year sequentially. momentum with content GGR GGR to and with sequentially of XX% to continues of and with revenue of by the iGaming, our we quarters generating was year-over-year In strong fueled The the growth. XX% the have sequential platform, business US, original iGaming up seven XX% growing our record both success contribution. on

up top market launch In fact the our games our April, billion year to going rent top like day in pipeline. We've one XX of OGS in were strong on on operators in the total the XX live of In this portfolio ours. market estimated anticipate XXXX. we reaching and and XX-plus GGR our content with Ontario single Fortunes we with the XX eight largest-ever results of with an a launched by platform, $X.X US from games seen

Our continues among deliver original and Rainbow consistently such top-performing to key as as ranked Riches, the standouts Fortunes XX MONOPOLY, content games.

Box success continued Studio building for also the XXXX. Elk We record studio Lightning month momentum achieving acquisitions with record consecutive our and its our GGR seventh quarter with from on fourth

like Book experienced with Our in Falls, Lightning track Gold are including we Combo, teams, Dealer Fish. Overall, distribution Horseman, of evergreen well-positioned content ramping capitalize remains the And up and on Money of of the great games our launch our on and Box, of franchises US we'll Coin of and This global depth Chicken games Live legalization. original and for such be performance fueled wave as proven the to Toro. scale QX. launches year

average X% the of Gold LTV X% Fish the going the integration quarter they're enabled sequentially. and to with executing all-time SciPlay million over as SciPlay. our users MAU, their and their an the reflecting on plan. two core at million. up represents users history and turned Alictus sequentially. games. overall by SciPlay's in continued casino All-Star retention moving social Player Project the highest highs, expanding Now another record of them grow and drive addition to monthly and for another second strong new with are average outperformance Quick That momentum improved to year-over-year market, And SciPlay XX the company achieving paying XX while performance, MAU is total revenue revenue in monthly to and game smoothly quarter Hit, and continues in launches investing the

Project the not sure X launch excited for miss at preview in Finally, next of week. second very sneak Investor to Day Make half. a the the special we're

there's comes of around, So it lead there's great as and gaming also the opportunity news of to land-based value digital emerging level mix a but when to unique and our new all increasingly converge. assets

executing on through at week audience In one payer follow. plan conversion game, to the games. next financial iGaming on of map every to our quarter. Feeding almost our road first SciPlay Connie. we'll results double now, scaling the turn and in and in and to It's me coordinated before focus one and launching soon our games XXX,XXX broader transform great we more scaled already on I even on cross-platform. rapidly seen casinos our Investor by work played a launching And a with across it share this are incredible on a map for fully our we've We on day week, Gold to any the over executing Time cross-platform our our it for creators Fish road cross-platform on other franchises people key and taking want one of land-based their our our thank each to across was singular of let what organization We're deployment example them platforms with casinos evergreen us more Day.

Connie James

Thanks, Barry.

company. want scale Before business. closing we go The successful lottery the financial the on I into and transformation the of congratulate achieved just short to of the is transformed months, have sale our materially the In incredible. results, XX and business of we pace our team we've

the First, the with sale our of our and business sale we refocused and lottery streamlined of our business. pending sports betting organization

financial bottom both have and Second line. with actions to these on the top sustainable we our growth clear with sight profile enhanced double-digit line of

our on our finally progress. to Fourth $XXX and we the our sales. our begun Third, significant back program. of on to have and have debt a outlined following already March already share transformed value capital return paying of balance refinancing allocation X profile repurchase we down significant sheet to million shareholder shareholders lottery authorization we've And capital and credit priorities we've enhance our made

on all operational with initiatives the to executing that these on even focus maintain continued teams have we've accomplished and Importantly, business. day-to-day our of strategic excellence our

to Net $XX increased all loss me touch continuing decreased to from million Consolidated a few result driven gaming businesses. on in of financial strong the operations million Let see a highlights recovery. quarter. double-digit primarily growth driven grew with XX% to revenue revenue as our year-over-year we with of gains our market growth as $XXX AEBITDA growth. higher by operating by our continue in double-digit income, XX%, across primarily Consolidated

operations progress call. since Our From consolidated XXX year versus a AEBITDA margin sheet perspective, was the basis balance made for tremendous continuing prior to points our up we last earnings XX%.

maintain high-coupon lottery closing favorable X.X to leverage March No of place down debt put loan, our our able we I sports to of and and leverage lottery associated window amount pay be series out moved and plan We significant average $X.X for credit covenant-light at the reflecting our on XXst a and of advantage take term reduced business, closing strong net reflecting declined existing expected of on We Following the of delivering target financial X.X transactions with can't principal enough promise Xth, a to April capital change a an loan this years. And squarely debt fundamental to which refinancing high-coupon billion debt our an the took $X a and debt XX% range the a X.X we put what debt our X.X saw business to of outstanding markets burdened and on billion debt net in debt, more the refinancing debt the times. expected us structure of from our take sale of our the debt successfully to sale emphasize our of We from by we our in enabling post credit the longer some weighted approximately were to debt of to ratio strengthened term sale times times transactions. profile. our the to of for quickly reported to net out And and new life ratio us the X.X transactions completed leverage our transform our of cost balance and is sheet. is adjusted ratio significantly high our business refinancing reduction. in oversubscription pricing. drive will with profile increase new to it. our levels our

on XX% a said, these steps the With annual control million We've chain. instituting taken, building savings taken are dynamic basis, rate we times proactive. reduction. and of steps what what number cash we've can but And we refinancing $XXX run including have on we been continue estimate on year interest to a we focus a ago of supply Barry a a approximately global

offshore is throughout We centers cost our continue inflationary the initiatives capital assured priority. focus offset a leverage conversion efficiency operational have cash our are the us specific helping driven And on and efficiencies we rest Collectively working the business and development optimize base. to a cycle. to these top to environment continued driving with current

and with to to was points $XXX AEBITDA of improvement double-digit outpacing growth to and growth now million translating $XXX revenue Turning AEBITDA increased our of basis XXX North improved segments. four margin growth to operations all to gaming resiliency seeing a recovery businesses, above European levels. operations product of in continue America in our our And RPDs market performance. testament our UK lines. a XXXX gaming business and and strong the performance million, gaming, revenue year-over-year. with business The year-over-year In XX% percentage to broad-based pace XX% revenue we're

the and another at Screen build gaming nearly Landmark cabinet, set our and XX% ops North units our the opening new last also installed base. installed Game year, levels. with record premium with replacement grew total a continue We of and games. XXXX year new versus our of XX% fueled highly mix by on strong for sales lineup Dual par America doubling both to sales anticipate We Kascada XXXX stepper throughout anticipated replacement to and base

leading anticipate X while And rebound, half hardware seeing business program iVIEW Our shuffler growing XX% a Systems business revenues continues our in business to slower subscribers and deliveries increased has added base experienced our of grew of games to are somewhat year-over-year. momentum back the and reward strong table part as for Meanwhile, more we of year. XX% grew our demand installed sequentially, we this year-over-year. the our the now

continue to we noting for which the principally timing remains we our While delivery. of products, the strong been supply are demand that to the environment impact has seeing dynamic, continued chain navigate limited

Looking by quarter the original the U.S. to Dealer ahead, growth X% as Studios, in we Lightning driven in XX% acquisition versus feel great primarily of as first-party million, about business iGaming investment driven how our long-term the and our and year, launch our for increase and up launches. success. set in Gaming our the U.S. $XX well flat In game revenues prior QX it increased is strong reflecting Box to increased and Elk in was AEBITDA by Live by content. revenues

our margin the which continues continuing was the with our the games XX% performance, these have in the strong approximately entry with great into quarter, iGaming Overall, the Our business original year investments AEBITDA growth U.S. back expectations in to of our and for with drive half line beyond. momentum upcoming market coupled should reflecting fast-growing fuel in dealer to live our and

highly this conversion player key engine With the cash-generative. metrics monetization the with we are to have capital and the sticky Finally with great to growth payer SciPlay live a momentum previously X.X%. AEBITDA guidance. in quarter quarter, million metrics SciPlay X% at ever. on through continues be benefits top business low its to another seeing margin in its line intensity delivering services its was continues show strong growing with $XX quarter, our continues with and of revenue second-highest quarter and in base, city provided and XX% invest strong improvements drive future to the line including in

cash quarter strong capital the priorities, in offset and flow our uses higher from to somewhat free working higher turning cash this was benefited while allocation more than flow revenue growth, capital Now by the CapEx. and

in profile principally collectively will strong continuing well the by we was the costs as transactions as driven which from growing transformation conversion demand gross capital of generate strategic sheet. the $X divestitures cash we finalization Post associated expected, billion increase from our balance As the working proceeds of operators for products. flow as of investments to growth improve to our with the benefit cash free our see meet and

balanced value, call, a priorities. earnings in enhance Importantly, last key allocation by three underscored and taking shareholder are as we to outlined capital to opportunistic our approach we

The debt target net of times a approaching. leverage which to first, to X.X reduction, debt fast range ratio we X.X are

The buyback, to returning with share share second, shareholders $XXX capital repurchase substantial our program. million

million Wrapping questions. leading key past when these mentioned, excellence $XXX share be Barry will further and levels. at week a laser-focused through the achieved to As active growth and we've we married acquisitions reduction, capital and operational continued to our prioritizing amount momentum with in our of this while very it have delivers our With accelerate value. buybacks, on business. be turn your up, in our that disciplined we continue year, third, recently unless strategy. positions purchased tremendous shares the of capabilities our progress we're getting growth on organic promises operator drive for started. last and over we our key We've for significant to just delivering And made and we'll purchasers which continue investment investments, long-term greater debt and opportunities, capital-efficient M&A significantly are We've made using

Operator

you, Thank Connie.

comes the begin of Barry of from will We Our the line [Operator now Truist. Instructions] Jonas first question Barry? Q&A session.

Barry Jonas

macro you an dive Great. Curious, an seeing user weakness or seeing that's the inflationary taking and and across as deeper perspective? end. Can Thanks. into Some the segments at if Hi low your operator operators look noted either we end from little my for guys thanks question. have anything and you're environment? a

Barry Cottle

Macro on lot There's no a so at of about I Barry. it, environment question Thanks volatile clearly you moment. a the people's is minds, appreciate very is that. the doubt raising market

and of play durability and as iGaming and April. end a see business. to actually And to we across or the and performance We're looking markets. you growing a we're recently three think step gaming, And continue and real strong view players that's it resiliency where sector those seeing social. However, looking have even high at into truly low as if And on in the And our example side. a whether love particular, demand at take payer I we the GGR on elevated we're an our games. levels in growth testament just the back the payers, revenue GGR in that seeing the I each which per demonstrates to think of on end. we across the high is This not that spectrum sectors, the fact comes do SciPlay our end

very we're but obviously this And of the we're So, seeing execute think across proves across look, these I to various the demand the to said, all confident our board. industry the is again and we And ability cycles. our spectrum continuing is remain in grow to all market. resilient that monitor business

Connie James

what's – the And I data thing our think Perfect. I see I hi might you. Barry, is, which additional great into one we real-time get add business beauty just happening. to about

So coffee often an coin-in at my just to in they example, gaming trends continue morning enjoy strong. the remain as and looking I

as Barry the are all right So direction. pointed signs in mentioned

Barry Jonas

that are then way you delays, more you other? to seeing or able other How guess are a Great. much color. are supply pressure that I has chain chain. one impacted side cost-wise that wanted And the Great. I through to appreciate really touch and to customers? to on And then the supply follow-up just sales I pass as

Connie James

one, in really some take doubt industries us they've that we to been supply impacts to There's Barry. happy And companies on timing similar nature. But it and chain. no about having Sure. other are for

XX ago, healthy which been have the We've about to to really instituted some I of us this. number global talent navigate supply we months allowed a bolstered think efficiencies, through to able the and news is drive good maintain that, were a margins. proactive chain cost

based to high. off those to of focus terms continue our and you're is levels we cabinets. be that ASPs, think past building what In continue on And seeing premium I content

opportunities, area I us. systems you half. when a probably wouldn't as for than it of issue bit some our the else towards timing, anything we're There's second more – proactive, results be to of and have so have continue timing that little to shifted comes all again seeing. And all one that there's something in would it's But more that's in a say, And we seen a positive specific. the real

Barry Jonas

Have any competitors had to of? some been that issues you've able take advantage

Connie James

can't I competitors. the behalf on speak necessarily of

I think the that, coming certain we're back. well positioned little for really to of inventory of moment positions is market ready last for ahead working two planned for this the terms bit taking we in years the be We've turnaround. leaned into a capital

So again ability we good about demand. feel our market really meet to

Barry Jonas

That's Connie. great. Thanks, Thanks, Barry.

Barry Cottle

Barry. Thanks,

Operator

Thank you, Barry.

question comes Craig-Hallum. next Ryan Sigdahl of Our Ryan? from

Ryan Sigdahl

my on Congrats with using taking an the thought or can that remote guess, competitive. to integrations start I They operators complementary versus acquisition OpenBet on it's question. if afternoon. for and have direct were always like And aggregator server. maybe results. we I've to of Curious, the the do open Good able companies gaming. how thanks own their gaming

complementary competitive it is acquisition? that how guess I versus with So

Barry Cottle

Absolutely. Ryan I'm assuming you're speaking Playzido. about

that is for So is to development by we an impact – Playzido the game Playzido outsized love going way – the platform. outside provide the open actually us. is Playzido

frame development. customized at to it with scale RGS do So some game what rapidly technologies. an allows us And provide that think as game to of is

exclusive been and asking customized which for can So they've partners, for. we provide our operating major content

about And immediately. operators have been this. part with frankly on road because best-in-class of they quite offering we've These on exclusive to time, engaging capabilities this quite their us for the which want map been into have way enables it customizing get our these offerings. to of So a really as us kind some create of was a for efficient content, to

just scalable makes at more us before. helps in this speed plugs other able weren't do a OGS, and that we content of and to type So whole bring into and right OGS scale which

content. win-win So for looking this been operating for huge us it's partners who have and our for a

Ryan Sigdahl

on Maybe one Barry. that, follow-up

better do So cetera developing is kind it help content operator that but or focused is content creation are the or to for their own third-party DraftKings MGM of them that and say this faster, primarily studios to et both?

Barry Cottle

looking is content both, -- it serve in of to and been -- ability you the this frankly was have the the type operators of best-in-class were named operator marketplace. able offerings -- here to is major know but was And and quite -- that as it best differentiated -- will that distributed kind plus clearly It platform perfect this will there for equals do some OGS kind one provide major one has in out the exclusively. was you every that of three

it So major operators looking basically in create address frame, own for for to us great customized the want if to that well they things that. that parties of -- there as plug to that a absolutely -- for creates way that are it But it game second opens off as for their it market well.

Ryan Sigdahl

for me. Great. Makes other a lot of one One sense.

continuing a look get it over to years? logical And take is and there good quarter. this mix to grow market What's to that the total premium next years? mix. of XX% base grow Steady we few just lease quarters installed confidence north to of see can to as progress in out several So that that continue share you think on the your XX% the

Connie James

to of glad part business. gearing to sure Ryan. of of. We've really got that to Thanks content And amazing really our scale up up. that and pick portfolio last see proud portion It's spent products make this two you we've we're the years the

want don't that it's runway. few support ideally of I that. We our to installed Our I in you're today. of happen here And an trends Barry And share. upward area know again, super been know nature And base products. we've a just half that We've Barry that. so of ultimate think phenomenal products those I seeing And on momentum drive explicit premium touch about. to about excited plenty to see is if being got is you goal of

Barry Cottle

about look, be we I the have. Ryan, more product we where Yes. could terms of sit excited our today and in map road not lineup product

products four If across it for we'll of portfolio have global time, the first complete cut all critical that at a you look segments.

a now; then year to end is off well; -- Kascada XXXX, and market which massively in the out got which start; the Kascada, fast you've separate coming Dual of in is then with the category. Landmark Screen who's at the and online Mural as So, coming

So we franchises utilization cover to of our all probably best it's four major backed and categories, by date. major

Kascada we've Wizard Jin Triple with we've for Link, Kascada Fortunes; Wonka, Legendary -- Ji of and Xi So our LandMarkXXXX Quick Fish, Mural. the Bao we got out. Willy XX Oz; Ultimate We've Blazing Gold Fire Monopoly, against got got Xs Dual coming on -- have Xs Hits, product

great group best-in-class products, by of designers probably the game this all game designers games within organization. we've built great had So best

rest So today love we we're and Ryan. the look continue very out to sit business. the year we share confident I'm grow year you. that next the and into and of take to where as Thank I going

Operator

question next Stifel. from Jeff? Jeff Our of Stantial is

Jeff Stantial

good wanted bit? mid-QX? everyone. if Thanks just possible there Like ramp about once investments at? you of framing I coming my you there. up how start launch are from kind Live line should of time the off a Where revenue for the not for Hey, just think to in? a contribution afternoon going to Barry, you what kind of sort given questions. go taking too we're little on the far do Dealer mind are live in of And some do we you

Barry Cottle

Live major XX% to products the the Yeah. of US. with in turnover launch And I'm important the we'll what's first over to which in is represent scheduled happy be in QX. Baccarat, Great question. Blackjack, our the three Roulette US that is say live studio Dealer

QX operating targeting as IP on some we're the content well a of part market of the which is is the And we're addition And building is that progress, launch. so that as part offering, exclusive that's best-in-class Dealer Live especially studios why TAM. that In and with leverages the our for we're highly our partner. table pleased track projected XX% customizable to we're the our fastest-growing be out given iGaming US and for of

Jeff Stantial

Barry. up on can follow That's mind, Then on Understood. a maybe you Thanks, if if helpful. earlier Playzido the just I question don't acquisition.

kind there think going that kind here? to operator? game an on through operators? about have the the with Obviously, own customized they it is their development targeting intent you that them and you of should opportunity more have point game themselves some those the still the decision for economics how the own been set the portfolio real maybe this like think the Is of walk here those capabilities? staff your games strategic add and staff. of just how desire route operators value or add development. the of internal for and of we have So the kind for build Are just kind Can And vocal don't that value sounds internal operators about their

Barry Cottle

This delivers looking actually for. they're Sure. acquisition what

UI/UX that So our deliver in able content it with are -- at Playzido acquisition offering exclusive partners deliver this that in can manner. is by want game major our reason looking the best in customized with operators what their games get differentiate the looking because players. addresses And they looking they're the but why we their that are for scale of are exclusive space some for. sole to world, with what merchandising product. and to And with to our of designers marketing exactly customized to the and offer a That's operators best built and particularly with

a dead the was segment actually this we provide hitting of actually else. with play better can market and on in than anyone So that

Operator

Jeff. Thank you,

question Next Beynon of from Chad? Chad is Macquarie.

Chad Beynon

kind with the where your think my new the to more importantly, America you expect orders if XXXX. market nice expand you're replace a in terms to is seen the of or kind appears XXXX through as Thanks we afternoon. replacement partnered Good slot and if of of wondering repurchase within get It that you that just continue operators taking I versus we've improvement question. for competitors. North from you in market was could Hi. and

the really talked out about pipeline, of You content the Thanks. figure that to where you good some are? but trying just purse and product strings the in have

Connie James

for And being for hearing us the Overall, say optimistic I'd thanks Sure. today. really with we're that question. tones. Thanks

to in Again, say game with this the normal think which trends saw week specifically recovered in I fully to is back provided you optimistic. on of of continuing by when earlier to XXXX got close this But great market quarter some to it. levels, European rebounding. our return. somewhat in the I'd now somewhat sales market the of earlier, businesses as similar XXXX number seeing what great a end to America CapEx think our of behind CapEx earnings The to your has that's North sign return terms think look we're momentum Barry to the we Australia at is well as I some just right always macro heard the in of towards that the year start return kind cycles of we point expect call we cautiously and exciting news that I a

anything? definitely So going optimistic add but if right Barry trends again the you cautiously wanted direction. to are in

Barry Cottle

we positioned. and we that ago think year through We've you Australia. if game we've America would mentioned sales better Look marketplace; both Yeah. earlier, we back sales, we've prioritizing the ops game say out across game I are And number step and rolled largest than profit ops, of lineup strategy have think I a the where pools premium look ever to if you as three one, today, in been we're and the success. and progress at the sectors game much And seen North strongest I just had. dramatic product

we're so bullish market and and the to they're space. market going our ability take where this operators how with the business in our again is grow And and the perceiving share very

Chad Beynon

an strength through successes should segment? noted and recent then And this Thanks. with operator you've a you expect regarding get regulator had X. and XXXX? any we standpoint as more you acceptance, importantly about from And the that talk acceptance in Thank cashless initiatives iVIEW you. Can we further Great.

Barry Cottle

Yeah.

stand. So where we're pleased very we

on strong iVIEW cashless. pleased the XX% our we're seeing where And we're As there. in you driven of momentum demand really mentioned piece base is stand X at that think we're with relative I we addressable I Huge now position. to think really that of the by the now

on and with states live offer to position nine cashless the is now leading continuing build. a just pipeline share and is of our systems have with We XX% XX,XXX EGMs. our And

product, to business. in that And and a is which -- our so the covers that product cashless launched addition we table AToM

place. again So really great in we're a

casinos both but from mode the also execution multiple rolling a pipeline out. in We deal have in

this confident mentioned for an we're unmatched very with offering. partners. before deliver our And we And have so position I our as to

Barry Cottle

Thank you Chad.

Jim Bombassei

more time Operator, for one question. have we

Operator

Okay.

question of last line Zach? comes Berenberg. Our of from Zach Silverberg the

Zach Silverberg

Hi, good afternoon guys.

So I noticed that SciPlay had recently appointed three Directors. new Board of

on be impact for curious Just forward in will if moving segment there the of the any light news? strategy the

Barry Cottle

reinforce And to provide SciPlay this pursuing. they their all-star SciPlay expertise get now is in growing casino has that broad that they help value we and that engine. The to and the momentum leaders brought have casual Board was and social building folks leaning team. pipeline SciPlay strategy to entering the actually next Board, industry of group the of the a additional to the their all we've directors level of space their to new the level. great SciPlay the support business to that developing on to of group add And different of the and perspectives can believe games deep

build a right right the was get team help it global in time the company. think at a move we to to so, us And game diversified

Zach Silverberg

stock buybacks over where cadence next balance talk with guys you. And mean XX-week the the share your near at quarters can about at? just just million you is I shares $XXX the a bought Got with back of low. in sheet few you

Barry Cottle

Sure.

that sustainable will of framework reflect as conversation a placing on and we're organically before make disciplined this X.X the number year profitable. we've to M&A continue repurchasing to little a about have where we'll on our ensure we've Connie, two, I'd more investments, developed compared love to were can we how talk First significantly all, just great ago. program; talked it and X.X create as allocation And outperform we is But in both about put want to to share be we times; balance us reminder three, one debt we pursue any and a the inorganically, our capital bit a shares. repurchase. can the to do with shareholder that healthy Connie share number sheet from down little a to number are: buyback about... more priorities management for and to emphasis and that pay that But talk repurchases, bit a capital must we returns you which

Connie James

shareholders glad see be of to is pick The dynamic these And you repurchase? opening and are we we also that's within what what that I And as we're Yeah, in take when It's our interesting, seeing our created. market going buying date. mentioned a can believe share that's that company, what back Barry good like the this exactly tremendous have by we're up. and we of value remarks the our times that path stock. strength his number in do done growth of see can for to sure. with some create advantage and And financial news dislocations the currently that and to opportunities

the because of mentioned, significant will we value. highlights. management So, opportunity the capital for us And drive the just our We to of which see be We've moving could to shareholder XXbX-X, it continue be as a the key a just pillar couple priority, Barry moment key we speed at with on market. to days a tremendous allowed maximize program. been us of in number just implemented a

Jim Bombassei

And for final comments. we'll turn Barry Thanks. Great. some it to over

Barry Cottle

transformed number to and on company key have this made year, us promises, shareholder significant our a of unlock We've tremendous value. delivering which progress positioned

the balance shareholders. we've future the lottery our capital our organization with With providing closing our the sheet, return flexibility sale, in to to of us and and streamlined financial significantly strengthened invest

on franchises them We are now singularly platform. focused great and across games and building deploying

position we opportunity unmatched is Our have growth. now for and unparalleled an

City. Investor in Thank see forward and support. next path drive XX discussing Day the guys on We are about thank May shareholder time of to journey and and our our for phase look you very value you at your and to to New key strategies We hope York you excited the there. upcoming our –

Jim Bombassei

operator. to the our for everyone joining turn back I'll you Thank it earnings call.

Operator

Quarter concludes the First participation. Scientific for Thank XXXX Call. your Games Earnings That all you

lines. now may disconnect your You

Light & Wonder (LNW) 10 May 222022 Q1 Earnings call transcript