Light & Wonder Stock Down As Court Grants Aristocrat Preliminary Injunction; FY25 Outlook Confirmed

(RTTNews) - Shares of Light & Wonder, Inc. (LNW) were losing around 17 percent in the Australian trading after the cross-platform games provider announced Tuesday that it received an order from the U.S. District Court for the District of Nevada granting Aristocrat a preliminary injunction relating to L&W's Dragon Train game.

Disagreeing with the judge's decision, the firm said it will promptly file an appeal, and will continue to vigorously defend against Aristocrat's claims, including presenting its defenses to a jury at a trial.

Further, Light & Wonder reaffirmed its 2025 targeted consolidated AEBITDA pf $1.4 billion, expecting continued strong growth across all businesses.

The company noted that its pre-ruling estimate of 2025 Consolidated AEBITDA for Dragon Train was less than 5 percent of the $1.4 billion. In order to mitigate the immediate impact and any continuing business disruption from the latest order, the firm said it is moving forward on a number of key initiatives.

According to the company, its market-leading game franchises will continue to drive its strong growth over the long term. The firm is also already working on new iterations of the Dragon Train franchise consistent with the terms of the Court's ruling.

Matt Wilson, President and CEO of Light & Wonder, said, "We are excited about the new games we will be featuring at the Global Gaming Expo in October. We expect our strong growth trajectory to continue, notwithstanding this decision. We have built an amazing business and a solid financial foundation over the last several years with great teams driving our success and are highly confident in our future of continuing innovation and ability to achieve our stated 2025 $1.4 billion Targeted Consolidated AEBITDA."

In Australia, Light & Wonder shares were trading at A$137.20, down 16.80 percent.