Light & Wonder, a leading gaming solutions company, has received board approval for a substantial new share repurchase programme, effective immediately and set to continue until June 2027. This strategic move comes as an extension and expansion of the company’s previous repurchase initiative, which was initially set to conclude in February 2025.
The earlier programme permitted the repurchase of up to $750 million in common shares but has now been fully exhausted as of June 13. Under its authorization, Light & Wonder successfully purchased 11.2 million common shares, representing approximately 11.5% of the total shares outstanding at the outset of the programme. The average purchase price of these shares was $66.72 each, reflecting a significant discount of 28% compared to the $92.35 closing price on June 13.
Light & Wonder’s CEO, Matt Wilson, expressed his enthusiasm following the board’s approval of the new repurchase programme. “I am pleased to announce that the board has approved a new, upsized share repurchase programme,” said Wilson. “We continue to successfully execute our growth strategy and return meaningful capital to our shareholders. With strong operating performance continuing across the business, we remain on track to achieve our $1.40 billion consolidated AEBITDA target for 2025 while continuing to invest for the future.”
Chief Financial Officer Oliver Chow also voiced his support for the initiative. He highlighted the success of the previous programme as a valuable tool for enhancing shareholder value. “Our prior programme was an effective value creation tool,” said Chow. “Moving forward, the new programme will allow us to deliver further value to our shareholders while underscoring our commitment to driving profitable growth and upside beyond 2025.
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The new repurchase programme’s launch marks a continuation of Light & Wonder’s robust performance, particularly noted during the first quarter of the fiscal year. The company reported a 12.8% increase in revenue for Q1, amounting to $756 million. This period also marked Light & Wonder’s 12th consecutive quarter of year-over-year growth. Enhanced performance was observed across the Gaming, SciPlay, and iGaming segments, contributing to overall revenue increases.
Furthermore, the company reported a remarkable 272.7% increase in net profit for Q1, reaching $82 million. Adjusted EBITDA for the period also saw a healthy rise, climbing 12.9% to $281 million, driven by strong revenue growth and sustained margin strength across all segments.
In addition to strong financial results, Light & Wonder made a strategic investment in the no-code automation platform Flows during the first quarter. The company believes this investment will accelerate growth and facilitate operational scaling in markets worldwide. Despite this significant move, CEO Matt Wilson indicated that while they continue to monitor the market for new opportunities, no further deals are imminent at this time.
The initiation of this new $1 billion repurchase programme is a clear signal of Light & Wonder’s confidence in its financial health and growth strategy moving forward. By extending and expanding their repurchase activities, the company aims to provide consistent and meaningful returns to its shareholders, reinforcing its commitment to sustainable growth and long-term value creation.
As Light & Wonder continues on its path of strategic growth and market expansion, stakeholders can anticipate further developments and potential investment opportunities that align with the company’s proactive approach to market dynamics and shareholder value enhancement. The gaming solutions leader remains poised to capitalize on its market position, bolstered by this latest financial manoeuvre and its unwavering commitment to innovation and excellence in the gaming industry.
In conclusion, Light & Wonder’s new repurchase programme is set to fortify its financial strategy and market standing, promising significant benefits for its shareholders and continued robust performance in the highly competitive gaming solutions market. As the company progresses towards its ambitious financial targets for 2025, stakeholders and market observers alike will be keenly watching its trajectory and the impact of its strategic investments and operational efficiencies.
