GGRAsia – L&W nods new share repurchase scheme worth max US$1bln

L&W nods new share repurchase scheme worth max US$1bln

Jun 14, 2024 Newsdesk Latest News, Top of the deck, World

Light & Wonder Inc, a cross-platform provider of game content and of casino games products, says its board has approved a new three-year share repurchase programme running until June 12, 2027, to acquire up to US$1 billion of the group’s outstanding common stock.

“As of June 13, 2024, the company has exhausted the US$750 million share repurchase authorisation under the company’s prior share repurchase programme,” Light & Wonder said in a Thursday filing in the United States.

That earlier scheme had seen the company acquire 11.2 million of its common shares, or 11.5 percent of shares outstanding at the inception of that programme. The average purchase price had been US$66.72 per share, which Light & Wonder said represented a nearly 28 percent discount to Thursday’s closing price of US$92.35.

Matt Wilson, Light & Wonder’s chief executive, was cited as saying in an accompanying press release: “I am pleased to announce that the board has approved a new, upsized share repurchase programme as we continue to successfully execute our growth strategy and return meaningful capital to our shareholders.”

He added: “With strong operating performance continuing across the business, we remain on track to achieve our US$1.4-billion consolidated AEBITDA [adjusted earnings before interest, taxation, depreciation and amortisation] target for 2025 while continuing to invest for the future.”

Oliver Chow, the group’s chief financial officer, was quoted as saying: “Given the continued momentum in the business, and our March 31, 2024 net debt leverage ratio at the middle of our target range of 2.5 times to 3.5 times, we have significant optionality with regards to capital allocation.”

He added that the prior share repurchase scheme had been “an effective value creation tool,” and that the new programme would allow the company “to deliver further value” to its shareholders while underscoring the group’s “commitment to driving profitable growth and upside beyond 2025”.

In May Light & Wonder reported first-quarter revenue of US$756 million, up 12.8 percent from a year earlier, including strong sales in the Asia and Australia land-based gaming markets.

The group had net debt of just over US$3.47 billion as of March 31.