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    Andre Fromyhr • UBS

    Andre Fromyhr's questions to Light & Wonder Inc (LNW) leadership

    Andre Fromyhr's questions to Light & Wonder Inc (LNW) leadership • Q2 2025

    Question

    Andre Fromyhr of UBS Group asked about margin optimization, questioning the sustainability of lower R&D and corporate costs. He also inquired if there was pressure on gross margins, with costs potentially rising faster than the reported 2% increase in average sales price.

    Answer

    CFO Oliver Chow stated that margins are expected to remain relatively stable through 2025, supported by contributions from Grover, scaling in Gaming Ops, and growth in the high-margin D2C platform. President & CEO Matt Wilson emphasized there is no intention to scale back R&D, but rather to maximize ROI, pointing to the company's 44% share of new premium games as proof of the R&D engine's success. Chow also noted that lower corporate costs were partly due to the timing of legal expenses.

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    Andre Fromyhr's questions to Light & Wonder Inc (LNW) leadership • Q1 2025

    Question

    Andre Fromyhr of UBS asked about the drivers behind the decline in the international gaming business, specifically the sequential drop in the installed base and slower unit sales volumes.

    Answer

    CEO Matt Wilson explained that sales volumes faced tough comparisons against a large Asian transaction and record Australian market share in the prior year. CFO Oliver Chow clarified that the installed base decline was due to a "onetime event" involving the conversion of leased units to sales in Latin American markets, a commercial model used from time to time.

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    Andre Fromyhr's questions to Light & Wonder Inc (LNW) leadership • Q4 2024

    Question

    Andre Fromyhr asked about the drivers of iGaming growth, including the game pipeline cadence versus land-based and any updates on the U.S. legalization outlook.

    Answer

    CEO Matt Wilson explained that a new R&D operating model under a single leader will tighten the release cadence of games like Huff N' Puff between land-based and digital channels. Regarding legalization, he stated the company does not see new U.S. states coming online in 2025 and is not building it into plans, but they are prepared for any future expansion in 2026 and beyond.

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