SciPlay Corporation

Q2 2023 revenue was $190 million, up 19% year over year from $160 million. Net income was $41 million, up 28% year over year, with a 22% net income margin. Diluted EPS was $0.25, up 9% year over year. AEBITDA was $59 million, up 45% year over year, with a 31% margin. ARPDAU reached a record $0.93, up 26% year over year; average monthly revenue per paying user was $102.04, up from $90.99; and payers were 609,000, up 9% year over year. YTD operating cash flow was $102 million, with $395 million in cash and total liquidity of $545 million. Management did not give formal next-quarter or full-year revenue/EPS guidance, but said Q3 margins/profit should decline sequentially as marketing spend increases in the back half of the year; current-year investment is expected to exceed initial plans, with further increase planned for 2024, and legal expenses are expected to total about $5.5 million, with about $1 million incurred in Q2 and about $2 million per quarter in each of the next two quarters.

Josh Wilson said the company continued to outperform the social casino market for a sixth straight quarter and credited the results to strong Live Ops, disciplined marketing, and player-first execution. He highlighted the strength of the core franchises, noting repeated revenue records and top rankings for Jackpot Party, Quick Hit Slots, and Gold Fish Casino. His tone was confident and upbeat, with emphasis on long-term growth opportunities from ad monetization, Alictus integration, and two new IAA games later this year.

Daniel O'Quinn focused on the quality and sustainability of earnings and cash flow, saying SciPlay is in the healthiest position in company history. He cited revenue of $190 million, net income of $41 million, EPS of $0.25, and AEBITDA of $59 million, plus $102 million of YTD operating cash flow, $395 million in cash, and $545 million in total liquidity. He also noted $60 million of share repurchases since May 2022, including nearly $15 million in Q2, while explaining that UA spend was reduced in Q2 and will rise in Q3, privacy/data security costs will exceed prior plans, and legal expenses tied to state allegations are expected to run about $5.5 million total.

There was no Q&A session because of Light & Wonder’s proposal to acquire the shares it does not already own. As a result, no analyst concerns or follow-up questions were addressed live. The key incremental disclosures instead came in management’s prepared remarks, including higher second-half marketing spend, increased privacy/data security investment, and expected legal costs.