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LAS VEGAS - Light & Wonder, Inc. (NASDAQ and ASX: LNW), a global games company, reaffirmed its financial targets for 2025, despite ongoing litigation with rival gaming company Aristocrat. The company stands by its projected $1.4 billion in consolidated AEBITDA and an adjusted net profit after tax (NPATA) range of $565 million to $635 million, which excludes any potential gains from the proposed acquisition of Grover Charitable Gaming’s business. The company’s current EBITDA stands at $1.045 billion, with a healthy revenue growth of 9.86% in the last twelve months.
The legal dispute intensified with Aristocrat amending its complaint on March 14, 2025, to include a trade secret misappropriation claim against Light & Wonder’s Jewel of the Dragon game. Light & Wonder has announced plans to respond to this second amended complaint by April 11, 2025, and intends to defend against the new allegations vigorously.
Aristocrat’s complaint also alleges that Light & Wonder’s replacement games for Dragon Train, such as the social game Dragon Train Grand Central, could benefit from the alleged misappropriation of trade secrets, even if none of the claimed secrets are used. Light & Wonder has been transparent with the courts and Aristocrat, ensuring that new games do not contain any of Aristocrat’s claimed trade secrets.
In response to the litigation, Light & Wonder has ceased commercializing Jewel of the Dragon and is offering replacements to minimize customer disruption. The company also conducted an internal review, which did not find evidence affecting games from other studios. Furthermore, they expanded their review to include all hold and spin games released before mid-2021 but expect no further issues.
The company has also addressed a preliminary injunction granted by the Nevada court on September 23, 2024, against Dragon Train games. They complied with the order by converting approximately 95% of the affected units within the required 30-day period. Additionally, Light & Wonder terminated the employment of Emma Charles, the game designer behind Dragon Train, following an internal review.
Light & Wonder’s commitment to research and development aims to maintain a robust and diversified portfolio, which they believe will not be materially affected by the litigation. The company plans to share new strategic objectives at its upcoming 2025 Investor Day.
The company will host an investor conference call on April 2, 2025, at 4:30 PM Eastern Time to discuss these matters further.
This article is based on a press release statement from Light & Wonder, Inc. and does not include any independent verification of the claims or financial information provided.
In other recent news, Light & Wonder reported its fourth-quarter financial results for 2024, revealing an earnings per share (EPS) of $1.42, which significantly exceeded the forecasted $0.94. Despite a slight revenue shortfall, with actual revenue at $797 million compared to an expected $805 million, the company’s adjusted EBITDA surpassed market expectations, coming in at $315 million. The company confirmed its guidance for full-year 2025 adjusted EBITDA at $1.4 billion, supported by expected sustained revenue growth from strategic investments in Gaming, SciPlay, and iGaming. Additionally, Light & Wonder is in the process of acquiring Grover Gaming, with the deal anticipated to close in the second quarter of 2025, further diversifying its revenue streams.
Benchmark analyst Mike Hickey raised Light & Wonder’s stock target to $130, maintaining a Buy rating, while Macquarie increased the target to $125, keeping an Outperform rating. Mizuho Securities adjusted its target to $80, maintaining an Underperform rating, citing mixed performance across different business segments. Light & Wonder’s Gaming Operations segment did not meet expectations, but the company remains optimistic about growth driven by a strong content pipeline and improved yields in the North American market.
The company is also actively executing a $1 billion share repurchase program, having bought back $243 million worth of shares in the fourth quarter, which represents 53% of its planned acquisitions through 2024. Light & Wonder is looking to expand into international markets such as Brazil, which are considered crucial for long-term growth. Analysts have noted the company’s strategic focus on sustainable shareholder value creation through disciplined financial management and market expansion efforts.
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