Light & Wonder prioritises debt reduction after AU$153m repayment
Deals & M&A1 min read
In brief
- Light & Wonder cited an AU$153m debt reduction in its third quarter.
- Chow said the company aims for leverage of three times cash flow by June 2027.
- Recurring revenue reached 67% of the total; systems sales fell 24%.
Chief executive Matt Wilson closed Light & Wonder's third-quarter earnings call late on Wednesday, describing "an eventful quarter". Among the financial results, Wilson highlighted a debt reduction of AU$153 million ($107.7 million). Fitch Ratings upgraded Light & Wonder's outlook to "Positive", and this was given particular emphasis.
Chief financial officer Oliver Chow said the company is prioritising debt reduction for now. Chow said the company aims to bring leverage down to three times cash flow by June 2027. No share repurchases were made in the third quarter, though Chow said they remain a permanent part of the company's strategy.
Recurring revenue reached 67% of Light & Wonder's total, compared with 64% in 2024. Systems sales dropped 24%, while table game sales dropped seven percent. The systems business was in "a rebuild phase", Wilson said. Wilson noted solid performance in the Class II segment.
Chicago was choosing slot route locations, and Light & Wonder had product ready, with 15 years of Illinois performance behind it. The CEO called 2027 "a pretty sizable opportunity". Pennsylvania, where skill games remain in limbo, was "further afield" for Wilson, who nonetheless hoped for legislative activity.