Global gaming giant Light & Wonder says it is targeting Consolidated Adjusted EBITDA of US$1.4 billion by 2025, representing a compound annual growth rate (CAGR) of 15% under its business transformation strategy.
The company provided some details of its strategy during an investor day on Tuesday, which also includes targeted total capital creation of US$10 billion from 2022 to 2025 and bringing down its net debt leverage ratio range to between 2.5x and 3.5x.
Reaching US$1.4 billion in Adjusted EBITDA would compare with 2021 EBITDA from continuing operations of US$793 million, and US$202 million in the first quarter of 2022.
“Over the last 18 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 [has resulted] 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’s 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.”
Light & Wonder previously announced that it had reduced the company’s debt from US$8.8 billion to US$4.0 billion following the sale of its lottery business.
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