Aristocrat shares rally as ASX firm reveals robust first-quarter revenues

Finance News

Aristocrat Leisure has reported a 6 per cent increase in revenue underpinned by Aristocrat Gaming, with strong performance in North America Gaming Operations reflecting expansion of the installed base and leading game portfolio performance, strong outright sales in most Rest of World markets, and encouraging growth at Aristocrat Interactive.

16% growth in normalised NPATA to $764 million reflecting effective execution of growth strategy, operating leverage, ongoing investment in organic growth initiatives, and cost optimisation across the group. Group revenue increased to $3.3 billion, representing an increase of 6% in reported terms and 4% in constant currency compared to the PCP.

Net profit after tax and before amortisation of acquired intangibles (NPATA) of $764 million was 16% above the prior corresponding period (PCP) in reported terms (13% in constant currency). This reflected the Group’s high-quality diversified portfolio of scaled, world-class gaming assets, effective execution of our growth strategy, leading organic investment in talent, technology and product, and overall cost discipline.

Aristocrat’s Chief Executive Officer and Managing Director, Trevor Croker, said “This was once again an outstanding result, reflecting Aristocrat’s resilience and ability to grow share and drive profitability through different operating environments.

“The Group delivered strong revenue and EBITDA growth over the half. This was underpinned by record Aristocrat Gaming performance, led by an exceptional North America Gaming Operations result, and strong growth in Aristocrat Interactive, while Pixel United achieved improved profitability despite mixed market conditions. The result again highlights resilience and scale as fundamental strengths of our business, supported by an effective focus on operational efficiency and extracting operating leverage.

“Following completion of the NeoGames acquisition in April 2024, we have consolidated the Anaxi and NeoGames businesses into a single, consistent brand identity, Aristocrat Interactive. We believe that rebranding to Aristocrat Interactive will benefit our customer and regulator conversations, galvanise our teams and drive closer collaboration with Aristocrat Gaming, unlocking significant value over time.

“Late last month, we were delighted to announce Moti Malul, previously CEO of NeoGames, as CEO of Aristocrat Interactive. We expect to deliver significant revenue opportunities and strategic benefits from the combination of Aristocrat’s leading gaming content, and long-term customer and regulatory relationships, with NeoGames’ technology and platform solutions.

“We made considerable progress in the first half of 2024 on our sustainability agenda, driving improvements and further lifting maturity across our most important priorities, including in Responsible Gameplay. Aristocrat also recently received approval from the Science Based Targets initiative (SBTi) of our near and long-term science-based emissions reduction targets, and verification of our net-zero science-based target by 2050. We continue to put the infrastructure in place to realise and report on our targets and look forward to keeping you apprised of our progress.

“Looking ahead, we will continue to focus on portfolio performance and capturing the significant strategic opportunities in front of us, including integrating NeoGames and positioning Aristocrat Interactive to achieve its full potential in this next chapter of Aristocrat’s growth,” Mr. Croker concluded.