LAS VEGAS – Light & Wonder, Inc. (NASDAQ: LNW), formerly known as Scientific Games Corporation (“Light & Wonder” or the “Company”), is hosting its 2022 Investor Day today and providing an in-depth review of its strategy to drive sustainable double-digit growth and to drive long-term shareholder value.
As part of the investor day, Light & Wonder is providing the following financial targets for 2022 through 2025:
- Double-digit growth with targeted 2025 Consolidated AEBITDA(1) of $1.4 billion or a CAGR(3) of 15%.
- Reaffirmed its targeted net debt leverage ratio range(1) of 2.5x to 3.5x, further strengthening the Company’s balance sheet and credit profile.
- Significant cash flow generation, reflecting a targeted free cash flow conversion rate(1) of 45% by 2025.
- Targeting a total of $10 billion of available capital to deploy through the Company’s balanced and opportunistic capital allocation priorities.
“Over the last eighteen months we have transformed our business and paved the way for significant shareholder value creation,” said Light & Wonder Chief Executive Officer Barry Cottle. “As we look ahead, there is no better time to be in the industry, which is huge, growing, and converging. We have transformed ourselves to take full advantage of our unmatched market position to capitalize on this opportunity. Our unique asset mix and leading market positions provide unparalleled advantages to deliver games fully cross-platform.
“This results in an enviable and durable financial profile, which includes double-digit growth, a high mix of recurring revenues and robust margins, all translating into robust cash flow generation. With a clear roadmap to take market share and drive long-term shareholder value creation, I’m very confident that Light & Wonder will be the one to lead the future of the game industry.”
Light & Wonder Chief Financial Officer Connie James added, “We are at an inflection point in our journey. We’ve moved rapidly to transform our Company and our balance sheet, significantly de-levering and positioning us to win. 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.”
At today’s event, Light & Wonder is highlighting that it is:
- Uniquely positioned to take advantage of estimated $70 billion game market TAM opportunity with a clear roadmap and strategy to win in a converging gaming world
- Best talent in the industry creating hit games and franchises that players can enjoy anywhere provides a sustainable differentiation and a competitive advantage.
- Only company with leadership positions across land-based, iGaming and social, with content that can be delivered anywhere.
- Greatest collection of IP and content, highlighting the breadth of Light & Wonder’s evergreen franchises.
- Unrivaled aggregation platform and industry leading insights on players.
- Deep relationship with operators, players and studios positions the Company to disproportionately benefit by connecting players across land-based and digital to create a seamless player experience.
- Expanding into high-growth digital markets investing organically and inorganically.
- Executing a balanced and opportunistic capital allocation strategy to unlock value
- Paying down debt with the proceeds of the Lottery business sale and pending Sports Betting business divestiture to further strengthen Light & Wonder’s financial profile and transform Light & Wonder into an equity story.
- Returning substantial capital to shareholders by actively repurchasing shares under the Company’s $750 million share repurchase authorization.
- Investing in key growth opportunities, prioritizing organic investments and taking a disciplined approach to M&A that delivers significant long-term value.
Event Webcast Details and Replay
A live webcast of the presentations, including the question-and-answer session after the prepared remarks, will begin at 9 a.m. ET and conclude at approximately noon ET. To access the live webcast, please visit the Company’s website and click on the webcast link. The live webcast will also be available directly at newworldsofplay.com.
A replay of the webcast will be available approximately one hour after the webcast and will be archived on the Company’s website.
About Light & Wonder, Inc.
Light & Wonder, Inc. (formerly known as Scientific Games Corporation), is the global leader in cross-platform games and entertainment. The Company brings together 5,000 employees from six continents to connect content between land-based and digital channels with unmatched technology and distribution. Guided by a culture that values daring teamwork and creativity, the Company builds new worlds of play, developing game experiences loved by players around the globe. Its OpenGaming™ platform powers the largest digital-gaming network in the industry. The Company is committed to the highest standards of integrity, from promoting player responsibility to implementing sustainable practices. To learn more, visit lnw.com.
