Fitch has predicted momentum for Light & Wonder as the igaming developer builds on the acquisition of SciPlay and positive overall machine sales.
The ratings agency backed Light & Wonder to maintain ‘its EBITDA leverage metrics in 2023 and 2024 consistent with ‘BB’. This comes after the company’s EBITDA leverage fell to 4.3x in 2022, and Fitch projects that this figure will stand at 3.7x for 2023.
Furthermore, Fitch also emphasised that integral to the positive outlook for Light & Wonder is the company’s elevating digital presence, which continued to build off the back of the recent SciPlay acquisition.
According to the group, it has led to a significant increase in monthly digital engagement as the firm has moved to expand its offering.
SciPlay was purchased by Light & Wonder in an all-cash transaction, which has bolstered its immediate impact.
As a result of the deal, SciPlay continued to operate as a wholly-owned subsidiary of Light & Wonder, with the company’s common stock to no longer be publicly traded on the Nasdaq Global Select Market.
Among the numerous plus points previously stressed by L&W as a result of the transaction are maintaining momentum of the company’s cross-platform strategy, flexibility for use of SciPlay cash flows for investments, and the facilitation of long-term margin enhancement opportunities via synergies.
It marked a continuation of an M&A strategy for rthe group, with purchases in recent memory including the likes of slot developer’s Lightning Box, ELK Studios and Playzido, as well as live casino supplier Authentic Gaming and loyalty solutions provider House Advantage.
In August, Matt Wilson, President and CEO of Light & Wonder, emphasised that second quarter financial improvements were validation of these investments, in addition to “the significant progress” made towards long-term targets.
Following confirmation of the acquisition, he stated: “Fully integrating SciPlay with Light & Wonder creates a more streamlined organisation with the financial strength to accelerate our cross-platform strategy and deliver enhanced shareholder returns.
“SciPlay continues to achieve record-setting results and market outperformance, and we are confident that together we will build on their considerable momentum.
“As one company, we will drive improved collaboration between our talented teams to build and deploy the most engaging games across our digital and land-based platforms and create a more seamless, best-in-class player experience.”
