As though putting the capstone on what has been a busy few months for Light & Wonder, the Las Vegas-based company released its three-year plan for growth to its shareholders at its 2022 Investors Day.
The goals laid forth are ambitious indeed: by 2025 it hopes to have a targeted EBITDA of $1.4bn as well as the goal to create $10bn in capital. This would mean an annual capital growth rate of 15%.
Further strategic goals that emerged from the day include reducing the debt leverage ratio to 3.7x (a key move on the path to a debt leverage ratio range of 2.5x to 3.5x). As well, there is a share repurchase plan afoot that will see $750m worth in shares bought back.
Management hopes to have a cash flow conversion rate of 45% by 2025, and, with this, comes the goal of having $10bn in capital at the company’s disposal for the purposes of acquisition.
The last several months have been in preparation for this sprint: the company recently underwent a rebranding (it was formally known under the moniker Scientific Games), and it sold off its lottery arm to Brookfield Business Partners.
Light & Wonder noted in tones of confidence to its shareholders that it has a worthy asset mix and a strong enough place in the market to achieve these goals.
Group CEO Barrie Cottle expanded on this sentiment: “Over the last eighteenth months we have transformed our business and paved the way for significant shareholder value creation. 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.”
