GGRAsia – Aristocrat FY profit up 17pct, performance in Asia ‘strong’

Aristocrat FY profit up 17pct, performance in Asia ‘strong’

Nov 13, 2024 Newsdesk Latest News, Top of the deck, World

Australia-listed slot machine maker and online gaming content provider Aristocrat Leisure Ltd reported revenue of just over AUD6.60 billion (US$4.31 billion) for its financial year ended September 2024, up 4.9 percent from the prior-year period.

According to Aristocrat, revenue growth was “driven by exceptional performance in North America gaming operations, with around 7.100 net units added to the installed base.”

The firm said 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.”

Aristocrat’s gaming segment recorded revenue of nearly AUD3.63 billion in the 12 months to September 30, a 4.8-percent increase from a year ago. It accounted for about 54.9 percent of the group’s aggregate revenue for the period.

The company posted a net profit after tax and before amortisation of acquired intangibles (NPATA) of close to AUD1.56 billion, a 17.2-percent increase from a year ago, it said in a Wednesday filing.

Aristocrat said its NPATA performance reflected “effective execution” of the firm’s growth strategy. Profit growth was also a result of “ongoing investment in organic growth initiatives and cost optimisation across the group”.

The firm declared a dividend of AUD0.42 per ordinary fully-paid share for the fiscal year ended September 2024, payable on December 20.

Aristocrat stated the “continued execution” of its capital management strategy had translated, in the fiscal year ended September 2024, in “AUD1.3 billion in cash returned to shareholders through dividends and on-market share buy-backs.”

First-half earnings before interest, taxation, depreciation, and amortisation (EBITDA) on a normalised basis were up 18.5 percent year-on-year, to nearly AUD2.47 billion. The firm reported an EBITDA margin of 37.4 percent for the fiscal year ended September 2024, up 4.3 percentage points in year-on-year terms

“This was an outstanding result, reflecting Aristocrat’s ability to grow through mixed operating environments and control a range of levers,” stated Aristocrat’s chief executive and managing director, Trevor Croker, in prepared remarks accompanying the results.

“This result again highlights resilience and scale as fundamental strengths of our business, supported by an effective focus on operational efficiency and extracting operating leverage,” he added.

Mr Croker recalled the firm had established, during the reporting fiscal year, a new unit for operations in the online real money gaming (RMG) segment, called Aristocrat Interactive. It generated revenue of AUD335.7 million, up 83.8 percent from a year ago.

“The creation of Interactive was a significant strategic milestone, and we are seeing momentum build across all areas of the business, with excitement and confidence about its prospects,” he added.

Aristocrat announced on Tuesday the sale of social gaming company Plarium Global Ltd for a “fixed consideration” of US$620 million. The sale of Plarium – coming after a strategic review of Aristocrat’s business, announced earlier this year – will be done via Pixel United Holdings Ltd, stated the parent company.

JP Morgan Securities Australia Limited said in a Wednesday note that the results for Aristocrat’s core operations continued to “beat expectations”. Analysts Don Carducci and Michael James added that the firm continued to “target growth” for group NPATA for the next full fiscal year.