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Home Gambling Industry Light & Wonder want EBITDA of $1.4BN by 2025

Light & Wonder want EBITDA of $1.4BN by 2025

18 May 2022
3 min. read

One of the executives at Light & Wonder's rebranding event.

Light & Wonder has big plans for its financial future as the company previously known as Scientific Games has now announced that it will seek to achieve an adjusted EBITDA of at least $1.4 billion by 2025. Part of this will lie in the cross-platform strategy that the company has assumed moving forward, hoping to penetrate both the interactive and land-based sectors.

The company spoke about its future plans on Tuesday during Investor Day, which offered a detailed breakdown of the operational results so far. Light & Wonder boasted a strong basis with upcoming capital creation to the tune of $10 billion in the next three or so years through 2025. The company will similarly seek to deleverage its credit profile by tackling its net debt leverage ratio.

Light & Wonder will seek to assume control over its own shares once again with the company allocating as much as $750 million to this purpose. A share buyback program should enable Light & Wonder to continue to assume more control over its own operations independent of outside investors and give it more leverage moving forward when looking to raise fresh capital.

Light & Wonder Chief Financial Officer Connie James was happy with the development and said that the company has been capable of maintaining a healthy balance sheet. "Our new path forward will lead to significant capital creation and with our balanced and opportunistic approach," the executive explained looking into the financials.

Light & Wonder CEO Barry Cottle also joined the conversation and argued that the company was part of the industry at one of the most important and auspicious moments for it. The industry continues to grow, Cottle said, and Light & Wonder is a part of that.

He further expressed confidence that Light & Wonder’s own unique mixture of assets and development arms has enabled the company to play an important part in this constantly evolving ecosystem that is the gambling industry today. Cottle continued by saying that Light & Wonder will be part of the very future of gambling.

By one estimate, the gaming market is going to be worth anything between $60 billion and $70 billion. This will help with unlocking further share value and secure more growth opportunities in the future, James added.

Image credit: Light & Wonder (BusinessWire)

18 May 2022
3 min. read