Aristocrat’s full-year profit tops US$1bln, up 14pct from a year ago

Aristocrat Leisure Ltd saw its reported net profit after tax and before amortisation of acquired intangibles (NPATA) from continuing operations rise 13.6 percent year-on-year to AUD1.49 billion (US$1.02 billion) for the 12 months to September 30. On a constant-currency basis, the increase was 22.3 percent, the Australia-listed slot machine maker and digital content provider said in a Thursday filing to the Australian Securities Exchange. The board authorised a final unfranked dividend of AUD0.51 per share, amounting to AUD302 million based on the shares issued at the date of the financial statements. The dividend is to be paid on December 8. The final payout brings the full-year dividend to AUD1.01 per share, up 8.6 percent from a year earlier, per the announcement. Statutory profit after tax from continuing operations rose 15.2 percent to AUD1.36 billion. Revenue from continuing operations however fell 3.2 percent year-on-year, to AUD6.09 billion. Normalised earnings before interest, taxation, depreciation and amortisation (EBITDA) from continuing operations were flat from a year earlier, at just under AUD2.64 billion. Normalised results exclude discontinued operations. Aristocrat’s three main segments are gaming, including casino slot machine equipment; Product Madness, for social gaming products; and interactive – covering gaming systems, iLottery, iGaming and sports, iGaming white-label, and content and aggregation. Plarium, the mobile games business sold in the previous financial year, is classified as a discontinued operation. Trevor Croker, Aristocrat’s chief executive and managing director, said in prepared remarks that the company “delivered a high-quality result driven by our leading content and exceptional execution, resulting in market share gains across key segments and channels”. “Second half product launches across Gaming and Interactive are providing clear momentum into financial year 2027, while Product Madness continues to deliver growth in a declining market,” he added. In a separate announcement on Thursday, Aristocrat said Mr Croker intends to retire in April 2027. The board has named Dafne Guisard as CEO-elect to succeed him, subject to any necessary regulatory pre-approvals. Gaming revenue growth Aristocrat Gaming, the group’s land-based casino equipment and content business, posted revenue of AUD4.02 billion, up 1.5 percent from a year ago, while segment profit rose 2.2 percent, to AUD2.21 billion. Its North American gaming operations installed base grew by about 6,500 units to nearly 82,000, taking its share of that market to 39 percent, the group stated. Revenue in Aristocrat Gaming’s “rest of the world” business – which includes casino slot machine sales in Asia-Pacific – rose 3.7 percent year-on-year to AUD844.2 million, while segment profit increased 10.3 percent, to AUD379.0 million. Outside Australia and New Zealand, unit sales fell slightly due to lower volumes in Latin America, while the average selling price rose 8 percent, driven mainly by the mix of cabinets sold in Asia, the supplier said. At a July investor briefing, Aristocrat identified new casino openings and expansions in Asia, Europe and the United Arab Emirates as opportunities to gain market share. Social casino revenue at Product Madness rose 2.2 percent to US$1.08 billion, while segment profit increased 7.0 percent to US$521.4 million. Direct-to-consumer sales accounted for 27 percent of social casino revenue for the year, rising to 30 percent in the second half, the firm stated. Aristocrat Interactive’s revenue, including its share of joint-venture revenue, rose 3.4 percent to US$457.2 million, helped by growth in online gaming content and iLottery. Segment profit fell 6.2 percent to US$122.6 million. The company cited its exit from the white-label business and acquisition-related investment as factors behind the decline in margin. Aristocrat’s net debt stood at AUD1.13 billion as of September 30, up from AUD423.3 million a year earlier. The company said on-market share buy-backs reduced its cash balances. Net debt was 0.4 times consolidated earnings before interest, taxation, depreciation and amortisation (EBITDA), up from 0.2 times a year earlier. The company said it expected NPATA to grow in constant-currency terms in the financial year to September 30, 2027, citing expected market-share gains at Aristocrat Gaming and Product Madness, and further expansion in online gaming content and iLottery at Aristocrat Interactive.