Light & Wonder has confirmed that it will be moving listing addresses, with the prominent global gaming major now shifting its stock exchange from NASDAQ to ASX, the Australian Stock Exchange.
The decision was announced by the company’s boss, CEO Matt Wilson, during the second quarter earnings call, and it caught investors by surprise. It was not a spur-of-the-moment decision, either.
North American delisting, Australian opportunity
Rather, Wilson explained that the final decision has been a carefully deliberated move that aligned with the company’s long-term strategy: "This comes off the back of an extended consultation process."
This change should be effective at the end of November, the company said, and explained that the brand would hold "considerable liquidity in a deep and existing market." The move is strategic, more so than the result of adverse market performance.
Earnings have grown, although sales have taken a hit, mostly because land-based companies across North America have been grappling with a slump in tourist numbers and travel. However, this temporary slump is not to be mistaken for the long-term outlook, with Wilson confident that things will be turning around before long.
Wilson also hailed the company’s SciPlay performance and confirmed that the Light & Wonder brand has been pushing steadily in both Canada and Mexico. In terms of online gaming, Huff ‘n More Puff has almost single-handedly lifted a quarter of the revenue in North America, the executive confirmed.
Yet, the game’s strong initial performance has also been questioned, with signs of a downward trend. Wilson explained that it was natural for the title to "atrophy" over time, as the initial buzz wears out. Regardless, the game remained an important part of the company’s revenue-generating strategy.
Light & Wonder to remain a well-diversified company beyond NA
But North America is hardly "it," as the company will also be looking to push into the Philippines, a market that is currently debating whether it should do away with the last vestige of online gambling, or introduce new, stricter rules.
Light & Wonder would not be the only company to seek out from the US and double down on other markets. PointsBet, another Australian major, sold its assets and has focused on its home market, as well as Canada.
