Australia-listed slot machine maker and online gaming content provider Aristocrat Leisure Ltd reported revenue of just above AUD3.03 billion (US$1.96 billion) for its financial first half, up 8.7 percent from the prior-year period.
The company posted a statutory interim net profit after tax and before amortisation of acquired intangibles (NPATA) of AUD578.7 million for the six months to March 31, a 15.1-percent decline from a year ago, it said in a Wednesday filing.
On a normalised basis – excluding the impact of certain significant items and discontinued operations – NPATA for the reporting period stood at AUD732.6 million, an increase of 5.6 percent from a year earlier.
First-half earnings before interest, taxation, depreciation, and amortisation (EBITDA) on a normalised basis were up 12.8 percent year-on-year, to nearly AUD1.25 billion. EBITDA margin stood at 41.1 percent, up from 39.7 percent a year ago.
The firm declared an interim unfranked dividend of AUD0.44 per share for the six months to March 31, payable on July 1.
During the period, Aristocrat Leisure completed a AUD1.85 billion share buy-back programme. It was meanwhile announced a new on-market share buy-back programme, of up to AUD750 million and to run through to February 2026.
Aristocrat Leisure said revenue growth in the six months to March 31 benefitted “from the inclusion of NeoGames,” as well as “market share gains across the [group’s] portfolio, and the strong U.S. dollar”.
The firm completed in April 2024 the acquisition of online real money gaming (RMG) provider NeoGames SA.
In February this year, Aristocrat Leisure confirmed it had completed the sale of its social gaming subsidiary Plarium Global Ltd to Modern Times Group, for a “fixed consideration” of US$620 million.
In line with the changes, Aristocrat said it would retire the Pixel United reporting segment and the associated corporate team structure, with Product Madness replacing the Pixel United reporting segment. The Product Madness segment includes Product Madness – Aristocrat’s core social slots business – and the social casino unit Big Fish Games.
Aristocrat Leisure has three operating divisions: Aristocrat Gaming, the group’s land-based gaming technology segment; Aristocrat Interactive, the firm’s segment focused on online RMG; and Product Madness.
Further installations, ‘strong’ interactive
In Wednesday’s announcement, the parent said Aristocrat Gaming “continued to deliver market share gains in the North American gaming operations installed base, underpinned by the depth and strength of the portfolio.”
The improvement in first-half results “reflected a resilient operating performance, the inclusion of NeoGames for the full period, partially offset by increased corporate costs including higher legal costs, lower interest income and a higher effective tax rate,” stated Aristocrat Leisure.
The filing cited Aristocrat Leisure’s chief executive and managing director, Trevor Croker, as saying: “This was a positive result, illustrating the quality of Aristocrat’s portfolio and ability to grow through different operating environments while also investing for the future.”
He added: “We achieved solid revenue and EBITDA growth in the period, once again highlighting market leadership and scale as fundamental strengths of our business, supported by a focus on operational efficiency and extracting operating leverage as we grow.”
Mr Croker said the brand “refocused” its mobile operations around the group’s “core Product Madness Social Casino business, in line with Aristocrat’s refreshed growth strategy”.
The CEO stated: “We expect an acceleration in operating momentum in the second half of the year as we capitalise on product rollout and technology initiatives across our portfolio.”
He added: “We remain committed to our capital management strategy and our ongoing on-market share buy-back programme.”
Profit in North America rose by 3.8 percent year-on-year, to US$560.0 million in the financial first half. Aristocrat Leisure said its installed base in that market grew by approximately 2,500 units during the period, “exceeding 73,600 units and growing market share to over 42 percent”.
Revenue in the ‘rest of world’ segment – including Asia – decreased by 9.4 percent year-on-year, to AUD341.2 million in the six months to March 31. Profit for the segment stood at AUD143.7 million, down 19.9 percent from a year earlier.
The group’s Product Madness division generated US$569.6 million in interim revenue, up 1.5 percent year-on-year. Profit from the segment rose by 9.4 percent, to US$244.3 million.
Aristocrat Interactive generated interim revenue of US$166.7 million, up 131.8 percent from a year ago. Profit for the segment grew by 259.5 percent year-on-year, to US$71.9 million.
