Shares of Light & Wonder, Inc. (LNW) dropped approximately 17% in Australian trading following the announcement of a U.S. District Court for the District of Nevada order, which granted Aristocrat a preliminary injunction concerning L&W's Dragon Train game.
The company expressed its disagreement with the court's ruling and indicated plans to promptly appeal. L&W committed to vigorously defending against Aristocrat's claims, including presenting its case before a jury trial.
Despite the legal setback, Light & Wonder reaffirmed its 2025 target for consolidated Adjusted EBITDA (AEBITDA) of $1.4 billion, projecting continued robust growth across all its business segments.
The firm highlighted that its pre-ruling estimate of 2025 Consolidated AEBITDA for Dragon Train represented less than 5% of the $1.4 billion target. To mitigate any immediate impact and ongoing business disruptions due to the court order, the company is advancing several key initiatives.
Light & Wonder remains confident that its market-leading game franchises will sustain its long-term growth. The company is also developing new iterations of the Dragon Train franchise in alignment with the court's directives.
Matt Wilson, President and CEO of Light & Wonder, stated, "We are excited about the new games we will be showcasing at the Global Gaming Expo in October. Despite this decision, we expect our strong growth trajectory to persist. Over the last several years, we have built an exceptional business and a solid financial foundation, with outstanding teams driving our success. We are highly confident in our future innovation and our ability to achieve our 2025 target of $1.4 billion in Consolidated AEBITDA."
In Australia, Light & Wonder shares traded at A$137.20, reflecting a 16.80% decline.
