Light & Wonder Announces $1B Share Buyback Program

In a strategic move that underscores its solid financial footing and long-term growth ambitions, Light & Wonder (L&W), the renowned cross-platform global games company, has announced a significant $1 billion share buyback program. Authorized by the Board of Directors, this new initiative will span three years, set to conclude on June 12, 2027. L&W confirmed the expansion comes on the heels of a previous repurchase initiative, which had aimed to buy back up to $750 million in shares but was fully executed by June 13, 2024.

The company reported it had successfully repurchased 11.2 million common shares at an average price of $66.72 per share, marking a notable 28% discount compared to the closing price of $92.35 on June 13. This latest move is poised to provide significant flexibility for L&W, allowing the company to make strategic decisions based on market conditions and other factors. According to Oliver Chow, L&W’s chief financial officer, the positive momentum and favorable net debt leverage ratio set the stage for this expanded capital allocation strategy. He emphasized that the previous buyback program had proven to be an effective tool for value creation, and the new program aims to continue delivering value to shareholders

L&W’s CEO, Matt Wilson, expressed his enthusiasm for the new, upsized share repurchase program, highlighting its alignment with the firm’s overarching growth strategy. Wilson stated that the approval symbolizes the company’s steadfast commitment to returning substantial capital to its shareholders. He emphasized that this isn’t just a tactical financial maneuver but a testament to L&W’s confidence in its growth trajectory and the robust operating performance anticipated in the coming years.

Wilson also noted that L&W remains on a steadfast path to achieving $1.4 billion in consolidated AEBITDA by 2025, an ambitious yet attainable goal given the company’s current trajectory. The company has continuously shown resilience and adaptability, ensuring a sustainable and profitable growth model. This new share repurchase program is seen as a critical component of L&W’s efforts to maximize shareholder value and reinforce its market position in the rapidly evolving gaming industry. The focus remains on delivering both immediate and long-term benefits to stakeholders while continuing to invest in innovative gaming solutions and technologies.