Australia-listed slot machine maker and online gaming content provider Aristocrat Leisure Ltd announced on Thursday that it will implement an on-market share buy-back programme of up to AUD750 million (US$476.4 million), “as a continuation of its proactive capital management strategy”.
This follows the completion in January this year of a previous AUD1.85-billion share buy-back programme, in which the firm purchased over 44 million shares at an average price of just over AUD42 per share.
In Thursday’s announcement, Aristocrat said that following receipt of US$600 million in proceeds on completion of the sale of Plarium Global Ltd earlier this month, and “given ongoing strong business performance and cash flow,” Aristocrat’s leverage “has continued to trend below its targeted net debt leverage ratio”.
“This provides opportunity to continue to invest strongly in growth initiatives, including strategic mergers and acquisitions, while also returning cash to shareholders through dividends and the on-market share buy-back programme,” the firm stated. It added that the new programme would be conducted “on an opportunistic basis”.
The on-market share buy-back programme “will commence on or after 7 March 2025 and will be funded from existing cash reserves”.
Aristocrat also said it intends to use a portion of the proceeds from the sale of Plarium “to repay its US$250 million Term Loan B debt facility by the end of March 2025, ahead of its 24 May 2029 maturity”.
Aristocrat’s chief executive and managing director, Trevor Croker, was cited in a press release as saying: “Aristocrat’s robust balance sheet and strong cash flow generation enables us to reinvest in the business and continue to return cash to shareholders via dividends and share buy-backs.”
He added: “Upon completion of the programme announced today, Aristocrat will have returned AUD2.6 billion to shareholders via share buy-backs. We will actively assess growth opportunities, including strategic acquisitions and investment in organic initiatives, on an ongoing basis.”
In separate comments at Aristocrat’s annual general meeting on Thursday, Mr Croker said the company continues “to see tremendous opportunities ahead” to support the group’s growth strategy.
“We … see scope to continue to take share across our established markets in both gaming operations and outright sales, driven by our leading game performance and ongoing investments in content and hardware,” stated the CEO.
The company said two examples of its growth strategy included the release of “Phoenix Link” and the firm’s cabinet dubbed “The Baron”. Mr Croker noted: “While early days, both are performing well and receiving great support from our customers.”
In November, the Australia-listed slot machine maker reported revenue of just over AUD6.60 billion for its financial year ended September 2024, up 4.9 percent from the prior-year period.
The firm said at that the time that revenue growth in the period was “underpinned by Aristocrat Gaming”, the group’s casino technology segment, with “strong volume growth and product mix in Asia.”
