Analysts at Fitch are praising Light & Wonder’s approach to its diversification across land-based and online content, expecting the company to “gradually increase its digital exposure, helping to offset potential cash flow variability in its land-based gaming operations. ”
In a Monday note, Fitch Ratings revised the company’s Rating Outlook from “Stable” to “Positive,” reflecting its “strong business profile as a top three gaming supplier, its moderately diversified product mix, solid FCF (free cash flow) margins, and disciplined capital allocation strategy. ”
The group does note that its SciPlay segment “has faced industry softness and monetization pressure at a key game, though Fitch expects the social casino market to stabilize as post-pandemic trends normalize.
