Announcement • Nov 03
SciPlay Corporation Files Form 15 SciPlay Corporation has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its Class A Common Stock under the Securities Exchange Act of 1934, as amended. The par value of the company's Class A Common Stock was $0.001 per share. Announcement • Oct 25
SciPlay Corporation Announces Board Changes SciPlay Corporation announced that on October 23, 2023 in connection with the consummation of the Merger and the other transactions contemplated by the Merger Agreement, the directors of the company ceased to be directors of the Company and James Sottile, a director of Merger Sub immediately prior to the consummation of the Merger, became the sole director of the Company. Announcement • Oct 24
Light & Wonder, Inc. (NasdaqGS:LNW) completed the acquisition of the remaining 17% stake of SciPlay Corporation (NasdaqGS:SCPL). Light & Wonder, Inc. (NasdaqGS:LNW) submitted a proposal to acquire the remaining 17% stake of SciPlay Corporation (NasdaqGS:SCPL) for approximately $110 million on May 18, 2023. Light & Wonder, Inc. (NasdaqGS:LNW) entered into a definitive agreement to acquire remaining 17% stake of SciPlay Corporation (NasdaqGS:SCPL) on August 8, 2023. As part of the consideration, SciPlay shareholders will receive $20 in cash for each share of SciPlay Class A common stock. As part of the definitive agreement, Light & Wonder, Inc. will acquire SciPlay for $22.95 per share in an all-cash transaction. Upon the close of the transaction, SciPlay would become a wholly-owned subsidiary of Light & Wonder.
The companies expect the transaction to close during the fourth quarter of 2023, subject to customary closing conditions. The transaction has been approved by the written consent of the holders of the requisite number of shares of common stock of SciPlay, such that no additional stockholder approval is required. The Transaction has been approved by the Board of Directors of Light & Wonder.
Macquarie Capital acted as financial advisor and fairness opinion provider and Robert I. Townsend III, J. Leonard Teti II, Matthew J. Bobby, Arian Mossanenzadeh and William D. Podurgiel of Cravath, Swaine & Moore acted as legal advisors to Light & Wonder, Inc. Lazard Freres & Co. LLC acted as financial advisor and fairness opinion provider to the special committee; and Sullivan & Cromwell LLP acted as legal counsel to SciPlay Corporation. Stuart Rogers of Alston & Bird represented Macquarie Capital (USA) Inc.as financial advisor. Light & Wonder agreed to pay Macquarie Capital a fee for its services of approximately $5,750,000, of which $1,250,000 became payable to Macquarie Capital upon the rendering of its opinion. Continental Stock Transfer & Trust Company, LLC acted as transfer agent for SciPlay.
Light & Wonder, Inc. (NasdaqGS:LNW) completed the acquisition of the remaining 17% stake of SciPlay Corporation (NasdaqGS:SCPL) on October 23, 2023. SciPlay will operate as a wholly-owned subsidiary of Light & Wonder, and SciPlay common stock will no longer be publicly traded on the Nasdaq Global Select Market. Recent Insider Transactions Derivative • Sep 24
CEO & Director exercised options and sold US$292k worth of stock On the 21st of September, Joshua Wilson exercised options to acquire 13k shares at no cost and sold these for an average price of US$22.82 per share. This trade did not impact their existing holding. For the year to December 2018, Joshua's total compensation was 17% salary and 83% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2023, Joshua has owned 252.06k shares directly. Company insiders have collectively sold US$559k more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • Aug 22
Price target increased by 7.2% to US$22.11 Up from US$20.63, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of US$22.68. The company is forecast to post earnings per share of US$1.01 for next year compared to US$0.94 last year. Valuation Update With 7 Day Price Move • Aug 15
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$22.66, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 27x in the Entertainment industry in the US. Total returns to shareholders of 59% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$34.87 per share. Reported Earnings • Aug 09
Second quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2023 results: EPS: US$0.26. Revenue: US$189.9m (up 19% from 2Q 2022). Net income: US$5.60m (down 1.8% from 2Q 2022). Profit margin: 2.9% (down from 3.6% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) missed analyst estimates by 3.3%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Entertainment industry in the US. Announcement • Jul 23
SciPlay Corporation to Report Q2, 2023 Results on Aug 08, 2023 SciPlay Corporation announced that they will report Q2, 2023 results After-Market on Aug 08, 2023 Price Target Changed • Jul 12
Price target increased by 7.9% to US$20.50 Up from US$19.00, the current price target is an average from 8 analysts. New target price is approximately in line with last closing price of US$19.95. The company is forecast to post earnings per share of US$1.06 for next year compared to US$0.94 last year. Announcement • Jul 06
SciPlay Corporation Announces Resignation of Constance P. James from Board of Directors, Effective as of August 25, 2023 SciPlay Corporation on June 27, 2023 announced the resignation of Constance P. James from the Board of Directors of the Company, effective as of August 25, 2023. Announcement • Jun 09
SciPlay Corporation Forms Special Committee to Evaluate Non-Binding Acquisition Proposal from Light & Wonder SciPlay Corporation announced that its Board of Directors has formed a special committee of independent directors co-chaired by Mr. Gerald Cohen and Ms. April Henry, and with Mr. Michael Marchetti and Mr. William Thompson serving as members. The Special Committee has been granted full authority to independently review and evaluate the non-binding proposal that the Board received from Light & Wonder Inc. on May 18, 2023, proposing that Light & Wonder acquire the remaining 17% equity interest in SciPlay that it does not already own for $20.00 per share in cash. The Special Committee has retained Lazard as its financial advisor and Sullivan & Cromwell LLP as its legal counsel in connection with its review and evaluation of the Proposed Transaction. The Company cautions its shareholders and others considering trading in its securities that neither the Board nor the Special Committee has made any decision with respect to the Proposed Transaction. There can be no assurance that any definitive offer will be made by Light & Wonder, that a definitive agreement will be executed relating to the Proposed Transaction or that this or any other transaction will be approved or consummated. The Company and the Special Committee do not intend to comment further about the Proposed Transaction unless and until they deem further disclosure is appropriate or as required under applicable law. Announcement • May 19
Light & Wonder, Inc. (NasdaqGS:LNW) submitted a proposal to acquire remaining 2.9% stake of SciPlay Corporation (NasdaqGS:SCPL) for approximately $110 million. Light & Wonder, Inc. (NasdaqGS:LNW) submitted a proposal to acquire remaining 2.9% stake of SciPlay Corporation (NasdaqGS:SCPL) for approximately $110 million on May 18, 2023. As part of the consideration, SciPlay shareholders will receive $20 in cash for each share of SciPlay Class A common stock. Upon the close of the transaction, SciPlay would become a wholly-owned subsidiary of Light & Wonder. Macquarie Capital acted as financial advisor and Cravath, Swaine & Moore acted as legal advisor to Light & Wonder, Inc. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to US$19.66, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 23x in the Entertainment industry in the US. Total returns to shareholders of 42% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$20.42 per share. Reported Earnings • May 11
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: EPS: US$0.25 (up from US$0.18 in 1Q 2022). Revenue: US$186.4m (up 18% from 1Q 2022). Net income: US$5.50m (up 25% from 1Q 2022). Profit margin: 3.0% (up from 2.8% in 1Q 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.2%. Earnings per share (EPS) missed analyst estimates by 1.9%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 10
SciPlay Corporation (NasdaqGS:SCPL) announces an Equity Buyback for $60 million worth of its shares. SciPlay Corporation (NasdaqGS:SCPL) announces a share repurchase program. Under the program, the company will repurchase up to $60.0 million of its class A common stock. The program will be valid till May 3, 2024. Recent Insider Transactions • Mar 19
VP of Finance recently sold US$99k worth of stock On the 14th of March, Daniel O’Quinn sold around 6k shares on-market at roughly US$16.75 per share. This transaction amounted to 71% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Daniel's only on-market trade for the last 12 months. Buying Opportunity • Mar 07
Now 20% undervalued Over the last 90 days, the stock is up 5.9%. The fair value is estimated to be US$21.30, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 3.9%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings is also forecast to grow by 11% per annum over the same time period. Reported Earnings • Mar 03
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: US$0.94 (up from US$0.80 in FY 2021). Revenue: US$671.0m (up 11% from FY 2021). Net income: US$22.4m (up 16% from FY 2021). Profit margin: 3.3% (up from 3.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 5.0%. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Buying Opportunity • Feb 08
Now 20% undervalued Over the last 90 days, the stock is up 15%. The fair value is estimated to be US$20.45, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 4.1%. Revenue is forecast to grow by 14% in 2 years. Earnings is forecast to grow by 68% in the next 2 years. Price Target Changed • Jan 19
Price target increased to US$16.32 Up from US$15.18, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of US$16.26. Stock is up 34% over the past year. The company is forecast to post earnings per share of US$0.96 for next year compared to US$0.80 last year. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Chairman Toni Korsanos was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 12
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: US$0.20 (down from US$0.24 in 3Q 2021). Revenue: US$170.8m (up 17% from 3Q 2021). Net income: US$4.80m (down 19% from 3Q 2021). Profit margin: 2.8% (down from 4.0% in 3Q 2021). Revenue exceeded analyst estimates by 2.2%. Earnings per share (EPS) missed analyst estimates by 3.7%. Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Entertainment industry in the US. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Recent Insider Transactions Derivative • Sep 23
CEO & Director exercised options and sold US$118k worth of stock On the 21st of September, Joshua Wilson exercised options to acquire 11k shares at no cost and sold these for an average price of US$10.99 per share. This trade did not impact their existing holding. For the year to December 2018, Joshua's total compensation was 18% salary and 82% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2022, Joshua has owned 208.67k shares directly. Company insiders have collectively sold US$210k more than they bought, via options and on-market transactions in the last 12 months. Board Change • Sep 06
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Chairman Toni Korsanos was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 10
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: US$0.23 (down from US$0.24 in 2Q 2021). Revenue: US$160.1m (up 4.0% from 2Q 2021). Net income: US$5.70m (down 3.4% from 2Q 2021). Profit margin: 3.6% (down from 3.8% in 2Q 2021). Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) exceeded analyst estimates by 2.3%. Over the next year, revenue is forecast to grow 12%, compared to a 24% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Board Change • Jun 02
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director CJ Prober was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Board Change • May 31
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director CJ Prober was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Major Estimate Revision • May 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from US$1.04 to US$0.91 per share. Revenue forecast steady at US$667.6m. Net income forecast to grow 30% next year vs 2.3% decline forecast for Entertainment industry in the US. Consensus price target broadly unchanged at US$16.15. Share price rose 12% to US$13.17 over the past week. Reported Earnings • May 11
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: US$0.18 (down from US$0.23 in 1Q 2021). Revenue: US$158.0m (up 4.6% from 1Q 2021). Net income: US$4.40m (down 17% from 1Q 2021). Profit margin: 2.8% (down from 3.5% in 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 22%. Over the next year, revenue is forecast to grow 11%, compared to a 36% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
High number of new directors Independent Director Nick Earl was the last director to join the board, commencing their role in 2022. Recent Insider Transactions Derivative • Mar 22
CEO & Director exercised options and sold US$71k worth of stock On the 15th of March, Joshua Wilson exercised options to acquire 6k shares at no cost and sold these for an average price of US$12.58 per share. This trade did not impact their existing holding. For the year to December 2018, Joshua's total compensation was 31% salary and 69% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2021, Joshua's direct individual holding has increased from 178.47k shares to 208.67k. Company insiders have collectively sold US$258k more than they bought, via options and on-market transactions in the last 12 months. Board Change • Mar 22
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. Independent Director Gerald Cohen is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Nov 12
Third quarter 2021 earnings released: EPS US$0.24 (vs US$0.24 in 3Q 2020) The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2021 results: Revenue: US$146.6m (down 3.0% from 3Q 2020). Net income: US$5.90m (up 7.3% from 3Q 2020). Profit margin: 4.0% (up from 3.6% in 3Q 2020). The increase in margin was driven by lower expenses. Recent Insider Transactions Derivative • Sep 24
CEO & Director exercised options and sold US$168k worth of stock On the 21st of September, Joshua Wilson exercised options to acquire 9k shares at no cost and sold these for an average price of US$19.36 per share. This trade did not impact their existing holding. For the year to December 2020, Joshua's total compensation was 31% salary and 69% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2021, Joshua has owned 178.47k shares directly. Company insiders have collectively sold US$5.9m more than they bought, via options and on-market transactions in the last 12 months. Executive Departure • Aug 12
Chief Financial Officer Michael Cody has left the company On the 10th of August, Michael Cody's tenure as Chief Financial Officer ended after 2.4 years in the role. As of March 2021, Michael still personally held 42.03k shares (US$680k worth at the time). A total of 4 executives have left over the last 12 months. The current median tenure of the management team is 2.33 years. Reported Earnings • Aug 12
Second quarter 2021 earnings released: EPS US$0.24 (vs US$0.29 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$154.0m (down 7.0% from 2Q 2020). Net income: US$5.90m (down 11% from 2Q 2020). Profit margin: 3.8% (down from 4.0% in 2Q 2020). The decrease in margin was driven by lower revenue. Price Target Changed • Jul 17
Price target decreased to US$18.88 Down from US$20.47, the current price target is an average from 10 analysts. New target price is 12% above last closing price of US$16.89. Executive Departure • Jun 15
Independent Director Jay Penske has left the company On the 9th of June, Jay Penske's tenure as Independent Director ended after 2.2 years in the role. As of March 2021, Jay still personally held 69.00k shares (US$1.1m worth at the time). A total of 3 executives have left over the last 12 months. The current median tenure of the management team is 2.17 years. Reported Earnings • May 12
First quarter 2021 earnings released: EPS US$0.23 (vs US$0.19 in 1Q 2020) The company reported a solid first quarter result with improved earnings and revenues, although profit margins were weaker. First quarter 2021 results: Revenue: US$151.1m (up 28% from 1Q 2020). Net income: US$5.30m (up 21% from 1Q 2020). Profit margin: 3.5% (down from 3.7% in 1Q 2020). The decrease in margin was driven by higher expenses. Recent Insider Transactions Derivative • Mar 18
Chief Financial Officer exercised options and sold US$313k worth of stock On the 15th of March, Michael Cody exercised options to acquire 19k shares at no cost and sold these for an average price of US$16.75 per share. This trade did not impact their existing holding. Since March 2020, Michael's direct individual holding has increased from 1.00k shares to 3.29k. Company insiders have collectively sold US$4.2m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Mar 04
Executive Chairman exercised options and sold US$3.8m worth of stock On the 1st of March, Barry Cottle exercised options to acquire 196k shares at no cost and sold these for an average price of US$19.37 per share. This trade did not impact their existing holding. Since March 2020, Barry has owned 20.00k shares directly. Company insiders have collectively sold US$3.9m more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • Mar 03
Price target raised to US$20.34 Up from US$18.76, the current price target is an average from 12 analysts. The new target price is 13% above the current share price of US$18.02. As of last close, the stock is up 97% over the past year. Reported Earnings • Mar 03
Full year 2020 earnings released The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2020 results: Revenue: US$582.2m (up 25% from FY 2019). Net income: US$20.9m (down 36% from FY 2019). Profit margin: 3.6% (down from 7.0% in FY 2019). The decrease in margin was driven by higher expenses. Analyst Estimate Surprise Post Earnings • Mar 03
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.1%. Earnings per share (EPS) missed analyst estimates by 12%. Over the next year, revenue is forecast to grow 1.1%, compared to a 28% growth forecast for the Entertainment industry in the US. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment deteriorated over the past week After last week's 15% share price decline to US$18.15, the stock is trading at a trailing P/E ratio of 10x, down from the previous P/E ratio of 11.8x. This compares to an average P/E of 36x in the Entertainment industry in the US. Total returns to shareholders over the past year are 101%. Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improved over the past week After last week's 28% share price gain to US$20.74, the stock is trading at a trailing P/E ratio of 11.4x, up from the previous P/E ratio of 9x. This compares to an average P/E of 36x in the Entertainment industry in the US. Total returns to shareholders over the past year are 97%. Is New 90 Day High Low • Feb 09
New 90-day high: US$18.06 The company is up 51% from its price of US$12.00 on 10 November 2020. The American market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 37% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$31.82 per share. Is New 90 Day High Low • Jan 15
New 90-day high: US$17.25 The company is up 14% from its price of US$15.10 on 16 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Entertainment industry, which is up 23% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$31.13 per share. Valuation Update With 7 Day Price Move • Jan 07
Investor sentiment improved over the past week After last week's 19% share price gain to US$16.47, the stock is trading at a trailing P/E ratio of 9.1x, up from the previous P/E ratio of 7.6x. This compares to an average P/E of 31x in the Entertainment industry in the US. Total returns to shareholders over the past year are 37%. Valuation Update With 7 Day Price Move • Nov 21
Market bids up stock over the past week After last week's 16% share price gain to US$14.51, the stock is trading at a trailing P/E ratio of 8x, up from the previous P/E ratio of 6.9x. This compares to an average P/E of 26x in the Entertainment industry in the US. Total returns to shareholders over the past year are 45%. Is New 90 Day High Low • Nov 11
New 90-day low: US$12.00 The company is down 13% from its price of US$13.84 on 12 August 2020. The American market is up 6.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Entertainment industry, which is up 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$28.38 per share. Analyst Estimate Surprise Post Earnings • Nov 07
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 6.2%. Earnings per share (EPS) missed analyst estimates by 6.9%. Over the next year, revenue is forecast to grow 6.9%, compared to a 24% growth forecast for the Entertainment industry in the US. Reported Earnings • Nov 07
Third quarter 2020 earnings released: EPS US$0.24 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: US$151.2m (up 30% from 3Q 2019). Net income: US$5.50m (up 175% from 3Q 2019). Profit margin: 3.6% (up from 1.7% in 3Q 2019). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Oct 06
New 90-day high: US$17.31 The company is up 12% from its price of US$15.47 on 08 July 2020. The American market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Entertainment industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$28.81 per share.