Light & Wonder shares surge as it builds new version of Dragon Train
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More news: Light & Wonder shares gained at market open on the ASX after the gambling company responded to a US court order restricting it from manufacturing and selling its new Dragon Train poker machines.
Shares were up 5.7% to $137.94 by 10:45pm, having had their value slashed last month following the district court injunction.
As part of court orders, Light & Wonder are building a new version of Dragon Train.
Light & Wonder to build new version of Dragon Train as part of copyright court case
The news: Light & Wonder is working on a second version of Dragon Train, as part of a judge's orders relating to an injunction filed in a US district court that restricts it from manufacturing and selling its new Dragon Train poker machines.
In an ongoing court case, ASX rival Aristocrat has argued that the game breached copyright for its own Dragon Link poker machines.
The numbers: In a video statement Light & Wonder chief executive Matt Wilson noted that the company is contacting customers as it complies with the judges order, while ensuring that it delivers its 2025 consolidated AEBITDA target of USD1.4 billion ($2.05 billion) and sustainable growth in the years that follow.
Wilson said that there are roughly 2,200 Dragon Train units installed in the North American market, and that the company is working with customers to convert those games out, in compliance with the judge's order.
He said that Light & Wonder's share buyback remains a "key focus" as it continues its new USD1 billion program.
The context: Wilson also confirmed that Light & Wonder has stopped selling Dragon Train in Australia. He said that the company has contacted customers to offer alternative games to fill its sales pipeline.
Wilson said Light & Wonder intends to build out a second version of Dragon Train in compliance with the judge's order. He noted that this is a "very high priority" and expects Dragon Train will continue to be a franchise in the company's portfolio for "many years to come".
He also confirmed the termination of Dragon Train's designer from Light & Wonder.
What they said: "When you think about what's in question here in this order, it's really a small portion of the overall game that is Dragon Train," said Wilson.
"It's just certain aspects of the math that are being challenged," he said.
The source: ASX announcement
