GGRAsia – Aristocrat full-year profit up 53pct, revenue tops US$4bln

Aristocrat full-year profit up 53pct, revenue tops US$4bln

Nov 15, 2023 Newsdesk Industry Talk, Latest News, Top of the deck

Australia-listed slot machine maker and online gaming content provider Aristocrat Leisure Ltd reported revenue of just below AUD6.30 billion (US$4.10 billion) for its financial year to September, up 13.0 percent from the prior year. The company posted a profit after tax of AUD1.45 billion, a 53.3-percent increase year-on-year.

The firm declared a fully franked dividend of AUD0.34 per share for the period ended September 30, in the aggregate amount of AUD220.4 million.

Earnings before interest, taxation, depreciation, and amortisation (EBITDA) on a normalised basis were up 13.8 percent year-on-year, to just below AUD2.11 billion.

The increase in revenue was “underpinned by Aristocrat Gaming,” the group’s casino technology segment, “with outstanding growth in gaming outright sales combined with continued expansion of the Class III premium gaming operations footprint”.

“The growth that Aristocrat delivered over the period demonstrates the ongoing resilience, competitiveness and diversification of our portfolio, and sound fundamentals in the markets in which we operate,” stated Aristocrat’s chief executive and managing director, Trevor Croker, in prepared remarks accompanying the results.

The CEO said the growth in revenue and EBITDA in the latest financial year “was underpinned by an exceptional gaming performance which more than offset an extended industry-wide moderation in mobile game demand,” which showed that “diversification and scale” were “fundamental strengths” of Aristocrat’s business.

“Our newest operating business, Anaxi, delivered on its initial market entry commitments and continued to establish solid foundations for growth,” stated Mr Croker.

As of September 30, Aristocrat’s online real money gaming (RMG) business, Anaxi, had signed content agreements with partners “representing over 80 percent of the U.S. iGaming market”.

In February, the company completed the acquisition of Roxor Gaming Ltd, an online RMG supplier based in London, in the United Kingdom.

The group said that growth in its business for casino slot machines in its “international” segment – referred to as ‘International Class III’ – was “driven by strong game performance and market recovery in Asia and improved operating conditions in Europe.”

Segment revenue at constant currency in International Class III was AUD212.2 million, up 98.7 percent year-on-year. The segment’s profit was AUD104.5 million, 167.3-percent higher year-on-year.

The growth in the segment “reflected improved operating conditions in Europe, and all markets in Asia being reopened since January, with faster than anticipated recovery from Covid restrictions,” said Aristocrat.

The international segment result was dwarfed by the AUD2.97 billion revenue produced by Aristocrat during the period in the Americas casino market, a year-on-year gain of 23.1 percent. Segment profit for the Americas was AUD1.64 billion, up 21.3 percent year-on-year, the firm said.

Growth in the Americas segment “was driven by larger customer capital spend, increased penetration of premium portrait cabinets and further successful expansion into strategic adjacencies,” said the gaming supplier.

The group’s Pixel United division generated AUD2.65 billion in full-year revenue, up 2.3 percent year-on-year. Profit from the segment was flat at AUD854.9 million.

Aristocrat’s CEO said strong free cash flow was generated during the period, “while surplus cash of AUD811 million was returned to shareholders through dividends and on-market share buy-backs.”

Earlier this year, Aristocrat announced a deal to acquire online RMG provider NeoGames SA for a total consideration of AUD1.80 billion. The acquisition is expected to close in the first half of calendar 2024, said Aristocrat.