Gaming equipment and online content provider Light & Wonder Inc announced at its 2022 Investor Day on Tuesday, it was aiming by 2025 to achieve annual consolidated adjusted earnings before interest, taxation, depreciation and amortisation (AEBITDA) of US$1.4 billion. That would represent a compounded annual growth rate of 15 percent over the period, from AEBITDA of US$793 million in 2021.
The group also aimed at “total capital creation of US$10 billion from 2022 to 2025”.
Connie James, Light & Wonder’s chief financial officer, was cited in a press release issued to coincide with the investor event: “We will continue to prioritise debt pay down, and return capital to shareholders through share repurchases and disciplined investments in our largest growth opportunities to unlock tremendous shareholder value.”
The company has received authorisation from its shareholders for a programme to repurchase shares up to a maximum capital value of US$750 million.
The firm also reaffirmed its aim to reduce net debt leverage ratio to the range of 2.5 times to 3.5 times by 2025, which would signify “further strengthening the company’s balance sheet and credit profile”. According to the group, its current net debt leverage ratio stands at about 3.7 times following a series of refinancing transactions and business sales.
In April, Light & Wonder – previously known as Scientific Games Corp – said it had retired an existing US$4.0-billion term loan and redeemed US$3.0-billion worth of its secured and unsecured notes. It did so via proceeds from the announced divestiture of its lottery business and a new US$2.2-billion term loan facility.
Barry Cottle, group chief executive, was also cited as saying in the release on the investor event: “Over the last 18 months we have transformed our business and paved the way for significant shareholder value creation.”
He added: “Our unique asset mix and leading market positions provide unparalleled advantages to deliver games fully cross-platform.”
Last week Light & Wonder reported first-quarter net profit attributable to its shareholders of US$26 million, compared to a net loss of US$15 million in the prior-year period.
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