entire product range and framed a mini conference program around the visit discussing key industry topics and trends. We held seminars, with internal and external experts exploring ways in which Light & Wonder is contributing to the wider debate. Feedback was excellent and the event was a big success for us as we not only reconnected with customers, but sought to match their aspirations with product and strategy too.
Customers acknowledge that they are looking forward to getting back to ICE, but we will continue to conduct this kind of event as they saw value in this experience. We have also established our Platinum Club, which is a customer panel whereby we have brought together the top 20-30 customers in our region, meeting with them on a regular basis to have the same kind of discussions; talking about the big trends in the business to make sure we are moving in the right direction to address their needs, not just as a vendor, but as a partner.
How big a part does leasing play in your strategy for Europe going forward - as in North America we’re seeing parity with outright sales?
Jon: Te recurring theme from our conversations with operators is that they want familiarity. Experimentation has taken a back seat. Customers want products that perform. Tey want guaranteed performance from a supplier that they trust that will return them to pre-pandemic levels. I believe that Light & Wonder has acted as good partners during Covid and as every one of our customers has different needs, we’ve continued that support by understanding what products they need to return to full power. Our products have played a big part in this support, which has been reflected in our increased ship-share. Te market has not recovered fully and purchasing has not returned to normal levels, but we are seeing a shift to products that guarantee a quick return.
While many operators are currently generating pre-Covid income levels we still have a long way to go before the confidence to invest at pre-Covid levels returns. However, we think that towards Q3-Q4 we’ll start to see normal levels of purchasing again. Tere is a little bit of nervousness in that operators are generating the same levels of income as before, but from fewer players. Tey have lost the casual mass-market players, with some customers not seeing this as a bad thing - as they can be a distraction from the core offer, which ties back to the key aspect - product. Core products are generating 90+ per cent of business and those are the products Light & Wonder supply.
In the States we’ve seen customers removing games from their floors with little to no impact on revenues - in fact they’ve saving money on the leases. Do you see this as a trend in EMEA?
Jon: Customers have been removing machines from the floor, but I think this is a short-term process primarily due to social distancing. Of course, faced with having to remove product due to Covid restrictions, operators removed the weaker performing products. It’s a scenario that underlines my previous point about delivering high performing titles as Light & Wonder’s games are the ones remaining on the floor.
Operators are considering whether they need to return those machines to floors given that their income levels have remained the same. However, the discussions I’ve had with customers is that the casual players will return and the volume of machines on gaming floors is designed to cater for the overspill during busy periods when they need additional machines. Te focus right now is undoubtedly on high-end players, but over time operators will start to introduce the casual player focused games too.
Jon: I’ve been involved in the South African market for 20 years, but recently it’s gone through the mill, both in terms of economics and then the pandemic. So to see operators turning the corner vindicates our commitment to that market. We have stayed the course and maintained our presence in South Africa. We have great performing products and one of the key things that’s helping us is the breadth of products we offer. We are a one-stop-shop for our customers, for tables, systems and EGMs, and we can package a strong commercial offering that gives operators the biggest bang for their buck. Tere is no compromise taking products from us across all sectors as they’re all high quality and high performing. Being able to give very strong competitive commercials is a very attractive proposition and that’s yielding some fantastic results.
What are the benefits to European operators of the cross-platform approach being taken by Light & Wonder. Where does iGaming and Social fit into the land- based casino offer?
“The recurring theme from our conversations with operators is that they want familiarity. Experimentation has taken a back seat. Customers want products that perform. They
want guaranteed performance from a supplier that they trust that will return them to pre-pandemic levels.”
South Africa has been a focus for many EMEA suppliers over the last year. What has been Light & Wonder’s approach to growth in this market?
Simon: We are very excited about our proposition for South Africa. Te new content is very strong and the team in South Africa is very confident in the product we are delivering, as it is designed and built to benefit that market, whether in the Class III or bingo sector. We are delighted to report that we are seeing great traction this year, which will be our best in South Africa for some time. We don’t see this as a one-off, but as a stepping-stone to future success.
Simon: Light & Wonder is uniquely positioned, given the breadth of our customer base, activities, geographic positioning and the nature of our product offering, to not just help customers to execute their plans, but help them understand the parameters of success as omni-channel and convergence affects their business at this moment in time. Te direction of travel is towards a converged future in which each way of reaching customers has to offer something unique. You can no longer exist in isolation from one experience to the next. We must talk at a customer experience level - which has to be more than gimmicks and the bare minimum offering of ‘the same game at the same time’ across multiple channels.
Having said that, we are on journey with our customers and it is not our job to force change. Part of that journey is the creation of the best content through world leading channels and platforms. We need to be at the forefront of convergence, but also make sure we do not shift too far ahead of the market.
We saw the contract renewal with Entain in the UK in April - with LnW supplying over 10,000 terminals to Entain’s LBOs (Coral and Ladbrokes) - what’s the background to such a major agreement?
Simon: Entain and Light &Wonder have recommitted to each other for another decade in one of the industry’s most successful gaming relationships. It’s a fantastic outcome from both perspectives. It is a cornerstone of our UK operations and is one of the largest accounts within
P16 WIRE / PULSE / INSIGHT / REPORTS
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212 |
Page 213 |
Page 214 |
Page 215 |
Page 216 |
Page 217 |
Page 218
