Light & Wonder, Inc. has reported its financial and operating performance for the second quarter of 2024, a result that reinforces the company's position as one of the leading leaders in the global entertainment industry. The company, which operates in three main segments – gaming, SciPlay and iGaming – has shown consistent growth, driven by innovation, international expansion and effective operational management. This report provides a detailed analysis of Light & Wonder, Inc.'s financial and operating results, highlighting the strategies that have driven growth and the outlook for the future.

Light & Wonder, Inc. reported revenue of $731 million in the second quarter of 2024, an increase of 6 percent compared to the previous year. The adjusted EBITDA margin also improved, from 37 percent to 39.8 percent reflecting both an increase in revenue and cost control.

The increase in adjusted?EBITDA, which reached US$ 291 million, represents a 10 percent year-over-year growth, a clear indication that Light & Wonder is managing to leverage its operations and optimize profitability. This result is even more impressive considering the company's investments in innovation and market expansion.

Gaming, consolidation and innovation

The gaming segment continues to be Light & Wonder's flagship, generating $436 million in revenue, a 5 percent growth compared to the same period in 2023. The increase was driven by strong demand for new game titles and the continued success of the system solutions offered by the company. Light & Wonder was able to expand its installed base of machines, as well as launch technological innovations that were well received by the market.

This segment also benefited from strategic partnerships and penetration into new international markets. The company highlighted the successful implementation of new machine models and the strengthening of its distribution networks, which contributed to increased sales and recurring revenue.

SciPlay, accelerated growth in the social gaming market

The SciPlay segment, which focuses on social games, showed a 12 percent growth in revenue, totalling $195 million. This growth was driven by an effective user acquisition strategy and the release of new content that kept players engaged. Additionally, the company has been focusing on improving the user experience through frequent updates and game customization, which has resulted in an increased active user base.

Light & Wonder is also investing in cutting-edge technology to improve player retention and more effectively monetize its social gaming platforms. These efforts have proven successful, with the SciPlay segment contributing significantly to the company's revenue diversification.

iGaming, expansion and partnerships

The iGaming segment grew by 4 percent, reaching $100 million in revenue. Although the growth is more modest compared to the other segments, Light & Wonder continues to expand its presence in the online gaming market. The company has established new strategic partnerships and is focused on expanding into regulated markets, particularly in?Europe?and?Latin America, where it sees significant growth potential.

In addition, Light & Wonder has invested in improving its iGaming platforms, introducing new games and features that increase user engagement.

One of Light & Wonder's key growth drivers is its persistence in innovation and product development. The company launched several new products and updates in the second quarter, which were well received by consumers and business partners. Additionally, Light & Wonder is investing in emerging technologies, such as artificial intelligence and big data analytics, to further personalize the user experience and optimize its operations.

The company has also reinforced its commitment to international expansion, investing in markets with high growth potential, such as?Latin America?and Asia. Expansion in these markets is seen as a long-term opportunity for revenue diversification and geographic risk mitigation.

Looking ahead, Light & Wonder, Inc. is well-positioned to continue its growth. The company plans to continue expanding its international presence, investing in innovation, and optimizing its operations to improve profitability. With a strong foundation and a clear strategy, Light & Wonder expects to continue to generate value for its shareholders while maintaining its leadership position in the global entertainment industry.

Light & Wonder, Inc.'s second quarter 2024 results demonstrate the company's financial strength and its ability to innovate and adapt to an ever-evolving market.

Gen. Haji Abubaker Jeje Odongo, the Minister of Foreign Affairs in Uganda, said that the government has launched an investigation into reports that officials at the Ugandan Consulate in Dubai, United Arab Emirates, are operating a casino and gambling facility, which is contrary to established diplomatic norms.

He made this revelation during a plenary sitting, responding to a concern raised last week by Muwada Nkunyingi (Kyadondo East), who asked the government to clarify social media reports alleging that Uganda had turned its consulate into a gambling hub.

“The allegations of turning a diplomatic facility into a casino are very serious. These claims touch on the misuse of a diplomatic facility against established diplomatic practices as per the Vienna Convention. They also raise questions about the trust and integrity of individuals and the critical matter of diplomatic relations between countries,” said Minister Jeje.

The Minister added, “Given the seriousness of these allegations, the Government of Uganda has taken a firm stance and instituted investigations. Since these investigations are ongoing, I am constrained in what I can say as it might jeopardize the investigation. I therefore request to make a full statement once the investigations are concluded.”

Before the Minister’s statement, Medard Sseggona (Busiro East) expressed concern about the decision to address such a sensitive matter in Parliament, questioning whether proper consultations were made regarding the implications of these allegations on Uganda’s diplomatic ties with the United Arab Emirates.

“I am concerned whether before including this matter on the order paper, consultations were made with those knowledgeable in diplomatic law. Considering the importance of this diplomatic mission and the services it provides, did you fully consider the implications of discussing such allegations publicly?” Sseggona questioned.

Sseggona highlighted the potential diplomatic repercussions of an open debate, especially given the recent report from the Ministry of Finance indicating that Uganda’s export earnings in May 2024 amounted to USD 891.97 million, a 39.4 percent increase from April 2024. The United Arab Emirates significantly contributed to this growth, particularly through gold purchases.

The report highlighted that the Middle East was the largest destination for Uganda’s exports, accounting for 34.0 percent of total exports in May 2024, with the UAE purchasing goods worth USD 297.65 million.

According to the UAE Ministry of Foreign Affairs, Uganda established diplomatic relations with Dubai in 2007, opening its embassy in Abu Dhabi the same year. The UAE embassy was opened in Kampala in 2011. The trade relations between Uganda and the UAE are strong and strategic, with the UAE serving as a key trade partner linking Uganda to the Middle East and acting as an important hub for transiting Ugandan goods globally.

Gambling is illegal in the UAE under Federal Penal Code Article 414, which is based on the Quran and forbids gambling practices, including operating a gambling venue or participating in unlawful games of chance. However, in September 2023, the UAE introduced a new regulatory body, the General Commercial Gaming Regulatory Authority (GCGRA), to oversee commercial gaming, creating a regulatory framework for a national lottery and commercial gaming.

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In Indonesia, the Ministry of Communication and Information, Kominfo, has announced the closing of 32 sites that provided conversion of mobile credit into cash, and that were related to online gambling activities.

Minister of Communication and Information Budi Arie Setiadi?explained that this action was taken to prevent and limit online gambling activities. "The blocking takes effect today. We have zero tolerance for online gambling, and all parties must unite in combating this illicit activity," he asserted at the Kominfo Office in Central Jakarta on Thursday, 8 August 2024.

The access shutdown targeted 32 Electronic System Providers (PSEs), of which only one, Boss Pulsa, was officially registered. The other 31 PSEs were operating without the required registration, despite legal mandates that all PSEs offering or trading goods and services must be officially registered. Indonesian legislation allows for access termination if a service is suspected of facilitating the conversion of mobile credit into money used for online gambling transactions.

“Kominfo also urges financial institutions, including banks, to actively participate in the fight against online gambling,” Minister Budi Arie stated. On August 7, Kominfo announced its partnership with the Financial Services Authority (OJK), Bank Indonesia (BI), and the Financial Transaction Reporting and Analysis Center (PPATK) to prevent the misuse of payment and banking systems for online gambling transactions.

Kominfo's strategy to fight illegal gambling is built upon six key pillars:

• The drafting of a Presidential Instruction on the Prohibition and Eradication of Online Gambling that will serve as the legal foundation for addressing online gambling platforms.
• Blocking of free Virtual Private Networks (VPNs) proven to be used for accessing online gambling sites.
• Strengthening policies on terminating Network Access Providers (NAP) from Cambodia and the Philippines.
• Issuing warnings and orders to digital platforms to control the Domain Name System (DNS) used for online gambling.
• Limiting pulse transfers to a maximum of IDR 1 million (approximately $62) per day, except for authorised agents.
• Conducting audits on PSEs potentially involved in online gambling, with the threat of revoking their registration if they fail to comply.

According to Minister Budi Arie, online gambling affects both the social and economic well-being of lower-income segments of society.

"Online gambling disrupts the social and economic conditions of small households, leading to increased crime, divorce rates, and child malnutrition," he explained.

"According to data from PPATK, 80% of online gambling participants come from low-income communities, who are often victims of the system. This is why our literacy and educational efforts are focused on raising awareness about the dangers of online gambling. It won't bring wealth; instead, it will lead to further hardship and misery for those involved," Minister Budi Arie added.

Sponsorship of football and other sports has always carried a lot of controversy and therefore it is not a surprise that sports sponsorship by gambling companies is being discussed and scrutinized so avidly. Nonetheless the most intriguing quote on sports sponsorship in today’s Financial Times is not related to gambling companies. Instead, it comes from an employee of an established bank in Italy. A Monte dei Paschi bank executive is quoted saying, “When we pulled the sponsorship of the football team and basketball team, we received death threats.”

Monte dei Paschi Bank began sponsoring the Italian football club AC Siena in 2007. This partnership lasted until 2013, during which the bank’s logo was prominently displayed on the team’s jerseys and other promotional materials. The financial backing from MPS helped AC Siena to compete at higher levels, attracting better players and enhancing the club’s infrastructure.

In basketball, Monte dei Paschi Bank sponsored the Mens Sana Basket Siena, also known as Montepaschi Siena. It began in 2000 and continued until 2014. This period marked a golden era for the team, which won multiple Italian championships and gained significant recognition in European competitions. The financial support from MPS was crucial in building a team that dominated the Italian basketball scene, winning five consecutive Serie A titles from 2007 to 2011. The sponsorship also helped the team to secure top-tier talent and improve its training facilities, contributing to its sustained success.

The Financial Times has featured an extensive article on Banca Monte dei Paschi di Siena SpA, the world’s oldest bank, based in Siena. The article explores the rich history and recent developments of this historic institution, which has been a part of the Italian banking sector for centuries. Founded in 1472, Monte dei Paschi di Siena has weathered numerous economic storms and controversies and continues to play an active role in Italy's financial sector.

The death of David Rossi, the head of communications at Monte dei Paschi di Siena, is one of the most controversial and tragic incidents in the bank’s history. On 6 March, 2013, Rossi was found dead beneath an open window at the bank’s headquarters in Siena. Initially ruled a suicide, his death has been surrounded by suspicion and controversy.

Rossi’s body was discovered below his office window at Rocca Salimbeni, the historic headquarters of MPS. He had reportedly been under significant pressure due to ongoing investigations into the bank’s financial dealings. The initial conclusion of suicide was quickly questioned as several inconsistencies and unanswered questions emerged. Surveillance footage showed a man walking past Rossi’s body shortly after the fall, raising doubts about the initial conclusions and suggesting that there might be more to the story.

In 2022, new evidence prompted authorities to reopen the investigation. This included video footage suggesting that Rossi’s death might not have been a suicide. The case remains one of the most mysterious and debated incidents in the bank’s history, highlighting the intense pressures and complexities surrounding MPS during its financial crisis. The ongoing investigations and public interest in the case continue to keep it in the spotlight.

As of this year, Monte dei Paschi di Siena is undergoing significant restructuring. The bank has been working to improve its financial health and stability after facing severe financial difficulties in the past decade. Recent efforts have focused on reducing the cost-to-income ratio, improving asset quality, and increasing profitability. MPS has successfully issued several bonds and improved its credit ratings. Additionally, the bank has committed to further disposals and capital increases to meet regulatory requirements and secure investor confidence. These efforts are part of a broader strategy to ensure long-term sustainability and growth.

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