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Light & Wonder Seeks Growth, Envisions $1.4B EBITDA


Scientific Games, now rebranded as Light & Wonder, has ambitious plans to expand its business. The company seeks to benefit from the growing gambling market and targets a consolidated adjusted EBITDA of $1.4 billion by 2025.

The Company Will Optimize Its Business

Light & Wonder revealed its plans on Tuesday when it explained its growth strategy to investors. Notably, it emphasized that it plans to keep scaling its business for the coming years and strengthen its balance sheet.

Light & Wonder seeks an adjusted EBITDA of $1.4 billion – a figure it hopes to reach by 2025. To reach this number, the company will have to have a compound annual growth rate of 15%. Additionally, the company plans to create $10 billion of capital in the next three years. Furthermore, it will seek to de-leverage its credit profile by reducing the net debt leverage ratio to about 2.5-3.5x. Lastly, Light & Wonder will launch a share repurchase program and has set aside $750 million for regaining its stock.

The company believes that it is well-positioned to benefit from the growing gambling market.

Light & Wonder Is Poised for Growth

Connie James, the chief financial officer of Light & Wonder, commented on the company’s plans before its investors. She said that the transformation of its balance sheet and the significant de-levering “position the company to win.”

Moreover, the new approach will increase Light & Wonder’s capital which, in turn, will increase shareholder value.

Our new path forward will lead to significant capital creation and with our balanced and opportunistic approach, we will continue to prioritize debt paydown, and return capital to shareholders through share repurchases and disciplined investments in our largest growth opportunities to unlock tremendous shareholder value.

Connie James, CFO, Light & Wonder

Barry Cottle, the chief executive officer of Light & Wonder, said that this is a very beneficial period. He pointed out that the overall growth of the industry is something that will greatly benefit the company.

Because of this, it is crucial to optimize Light & Wonder’s business and take advantage of the company’s market position. Cottle said that it is important to capitalize on the opportunities ahead and keep on delivering Light & Wonder’s supreme cross-platform products. Cottle concluded that he is optimistic about the company’s future in the game industry and believes it will remain one of the trend-setters.

Light & Wonder recently launched its offerings in the fresh Ontarian market, after receiving approval from the Alcohol and Gaming Commission of Ontario.

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