Light & Wonder Predicts 15 Percent Growth

Light& Wonder CEO Barry Cottle (l.) predicted at an investor’s day update that the company will grow by 15 percent annually until 2025, with adjusted pre-tax earnings targeted at $1.4 billion.

Light & Wonder Predicts 15 Percent Growth

Gaming supplier Light & Wonder’s executives predicted an annual growth rate of 15 percent leading up to 2025, with a targeted adjusted EBITDA that year of $1.4 billion.

The company also predicted it will have $10 billion in available capital to deploy after debt reduction efforts are complete, reflecting a cash flow conversion of 45 percent.

“We kicked off 2022 with a number of significant achievements and strong momentum across our businesses with strong revenue growth of 26 percent in the quarter,” said Barry Cottle, president and CEO of Light & Wonder. “The sale of our lottery business was another significant milestone as we de-lever and maximize cash, which transformed our balance sheet reducing our net debt leverage ratio from a peak of 10.5X just over 15 months ago to an adjusted net debt leverage ratio 3.7X or by approximately 7 turns.

“We are delivering on our promises to create great content cross-platform while expanding in high-growth digital markets and enabling a seamless player experience. With a reconstituted balance sheet, sustainable double-digit growth and strong cash generation, we now have the ability to significantly enhance shareholder value through a disciplined approach to capital allocation.”