Illumination & Marvel, the firm recently rebranded from Scientific Games, declared that its initial quarter of 2022 earnings expanded by 26.3% annually, while the group also finalized the takeover of content developer Playzido.
Illumination & Marvel revealed in its latest quarterly report that its initial quarter of 2022 earnings increased by 26.3% annually to $572 million (£464 million/€543 million), up from $453 million in the same period last year. The company also declared that it had completed the acquisition of content developer Playzido.
The company’s ongoing operations revenue excludes its lottery or sports betting businesses from vendors, although these businesses were still part of the operation at the end of the quarter, but the company has agreed to sell them.
Service earnings accounted for $431 million of total revenue, up 18.4% annually, while product sales revenue grew even faster, up 58.4% annually.
By segment performance, gaming revenue was $355 million, up 45.5%. Illumination & Marvel stated this was primarily due to continued market recovery following the pandemic, record high installed base in North America, increased average daily revenue per unit, and growth in game sales, systems, and table games.
SciPlay social gaming business revenue grew by 4%.
Illumination & Marvel Acquires Playzido, Announces 26.3% Q1 Revenue Growth – Quarterly Results – iGB
During the second fiscal period, the firm’s income rose by 6% to $158 million, the second highest recorded. This expansion was primarily fueled by an increase in average monthly paying users, which climbed by 7% due to enhanced paid conversion rates.
Moreover, the quarter’s gaming revenue climbed by 1.7% to $59 million. This growth was attributed to continued strong performance in the US market, where income grew 63.0% year-over-year, and robust performance from companies acquired in the latter half of 2021.
On the expense side, total operating expenditures increased by 18.5% to $532 million, with spending across all business areas rising. However, the effect of revenue growth was so substantial that operating profit increased by 900.0% to $40 million.
Light and Wonder noted that other costs were $104 million, primarily interest expense, resulting in a pre-tax deficit of $64 million, lower than the $85 million deficit in the same period last year.
The group paid $3 million in income tax, resulting in a net loss from continuing operations of $67 million, better than the $88 million loss in 2021.
However, after taking into account a net profit of $95 million from discontinued operations (namely lottery and sports betting businesses) and a net loss of $2 million from non-controlling interests, total net profit was $26 million, compared to a loss of $15 million last year.
Additionally, Light and Wonder said adjusted EBITDA from continuing operations increased by 42.3% to $202 million.
Reviewing the initial three-month period’s results, Light and Wonder’s chief executive, Barry Cottle, also highlighted a series of noteworthy occurrences, including the sale of its lottery enterprise to private equity firm Brookfield Business Partners for a substantial $58 billion shortly after the conclusion of the quarter.
In the weeks following the end of the initial three-month period, the company finalized its rebranding to Light and Wonder, declared a long-term agreement extension with Entain, and secured a permit to operate in Ontario. The company also declared the acquisition of Playzido, a content creation platform provider and game supplier. Monetary details of the deal were not revealed, but Light and Wonder stated the acquisition would expedite its capacity to collaborate with global game studios and operators to develop novel exclusive content for players.
“We initiated 2022 with a series of notable accomplishments and robust business momentum, with revenue exhibiting substantial growth of 26% during the quarter,” Cottle remarked. “We are fulfilling our pledge to generate exceptional content across various platforms, while expanding into high-growth digital markets and providing a smooth player experience.
“With our restructured financial position, sustainable double-digit growth, and robust cash flow, we are now strategically positioned to significantly enhance shareholder value through a disciplined approach to capital allocation.”
Meanwhile, Light and Wonder declared the acquisition of Playzido, a content creation platform provider and game supplier.
Monetary details of the deal were not revealed, but Light and Wonder stated the acquisition would expedite its capacity to collaborate with global game studios and operators to develop novel exclusive content for players.
Illumination and Marvel has revealed that the agreement will provide creative workshops a quicker method to release their games to the public. Studios lacking their own development platforms can leverage Playzido’s technology to craft new games and utilize its OpenGaming platform for distribution.
Playzido was established in 2018 by Stuart Banks, a former employee of Paddy Power Betfair.
“The Playzido agreement is a prime example of our acquisition strategy, focusing on companies aligning with our global vision,” stated Dylan Slaney, the head of online gaming at Illumination & Marvel. “This demonstrates our dedication to strategic investments that will bolster our game development capabilities across diverse platforms.”
“Playzido’s platform is among the industry’s leading solutions,” Slaney continued. “We’re thrilled to utilize this technology to empower studios and game companies worldwide in creating and distributing games that players will adore.”
Banks, the head of Playzido, added: “This agreement reflects the dedication of our team in constructing a top-notch gaming platform that assists independent studios and game companies in bringing their visions to life.
“Joining Illumination and Marvel is perfectly timed. Their OpenGaming platform and regulatory expertise will accelerate our growth by attracting more studios to collaborate with us.”
This agreement is completely logical, and our focus is now on expanding our operations globally.
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