Aristocrat Leisure Reports Strong Financial Results for FY 2024: Earnings per Share Up 20%

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Aristocrat Leisure has reported impressive financial results for the fiscal year ending 30 September 2024, showcasing its robust market performance and strategic growth initiatives. The company’s strong financial metrics, particularly a 20% increase in earnings per share (EPS), underscore its dedication to expanding its footprint and optimizing operational efficiency. This growth was notably driven by its successful operations in North American gaming and its flourishing Aristocrat Interactive division.

Revenue and Profit Growth for FY24

For the fiscal year 2024, Aristocrat recorded a 5% increase in total revenue, reaching AU$6.6 billion (US$4.31 billion). The North American gaming segment emerged as a significant contributor to this growth, with the addition of approximately 7,100 net units to its installed base, cementing its position as a leader in this key market.

Aristocrat’s normalized net profit after tax and amortization (NPATA) surged by 17% to reach AU$1.6 billion, supported by the company’s continuous focus on growth strategies and cost efficiencies. The strategic initiatives have enabled Aristocrat to optimize its operations and leverage economies of scale, enhancing profitability across its business divisions.

Strong EBITDA Performance and Margin Expansion

In FY24, Aristocrat’s EBITDA rose by 18.5% to AU$2.47 billion, reflecting the company’s ongoing efforts to improve cost structures and operational leverage. The EBITDA margin also improved, climbing from 33.1% to 37.4%, indicating a more efficient allocation of resources and a streamlined operational model. This margin expansion demonstrates the effectiveness of Aristocrat’s cost control measures and strategic investments in technology and infrastructure.

Capital Management and Shareholder Returns

Aristocrat continues to focus on delivering value to its shareholders through an active capital management strategy. In FY24, the company returned a total of AU$1.3 billion to shareholders via dividends and on-market share buybacks. This included a final dividend of AU$0.42 per share, bringing total dividends for the fiscal year to AU$0.78 per share, marking a 22% increase compared to the previous year. The substantial returns reflect Aristocrat’s commitment to maintaining a balanced approach to growth and shareholder value.

North American Gaming Operations: A Key Driver of Growth

The North American market remained a core focus for Aristocrat, particularly within its gaming operations. This segment reported strong revenue growth, driven by a significant increase in the installed base of gaming machines. During FY24, Aristocrat added approximately 7,100 new units, bringing its total to over 71,000 units. The company’s strategic focus on product innovation and market expansion has enabled it to capture substantial market share in North America.

Market Expansion and Revenue Growth in New Territories

The company’s North American operations also saw a rise in profitability, with operating margins climbing to 58.9%. This growth was bolstered by a high fee per day for each unit and expansions into new regions such as Quebec and Georgia. The entry into these new markets has allowed Aristocrat to diversify its revenue streams and solidify its presence in the highly competitive North American gaming landscape.

Digital Division: Pixel United Delivers Consistent Performance

Aristocrat’s digital division, Pixel United, reported steady performance with flat year-on-year revenue. Despite a challenging market environment, Pixel United managed to maintain strong profitability, recording AU$1.75 billion in bookings and achieving a margin increase to 36%. The social casino segment was a standout, surpassing $1 billion in annual bookings for the first time. This achievement was largely driven by the enduring success of popular titles like ‘Raid: Shadow Legends,’ which recently crossed $2 billion in lifetime bookings.

Expansion in iGaming and Social Casino Markets

Aristocrat Interactive also delivered outstanding results, posting an 85% increase in revenue (in constant currency). This growth was driven by organic expansion in the iGaming sector, particularly in the North American and European markets. The division’s success underscores the company’s ability to capitalize on emerging trends in digital gaming and leverage its portfolio of well-established game titles.

Strategic Acquisitions to Fuel Future Growth

In FY24, Aristocrat continued to expand its portfolio through strategic acquisitions. The purchase of NeoGames and Roxor Gaming positions Aristocrat to further penetrate the iLottery and iGaming sectors. These acquisitions, combined with strategic partnerships with major operators in the United States, Canada, and Europe, will enhance the company’s ability to scale its digital offerings and drive long-term growth.

CEO’s Outlook for 2025 and Beyond

Aristocrat’s CEO and Managing Director, Trevor Croker, expressed confidence in the company’s outlook for 2025, stating: “Looking ahead, we continue to see strong momentum in our core business as we focus on portfolio performance and seek to capture the significant strategic opportunities in front of us. We are committed to our capital management strategy, ongoing share buy-back program, and implementing the outcomes of the strategic review of our casual and mid-core gaming assets.”

Croker emphasized Aristocrat’s focus on maintaining a balanced approach to growth, optimizing portfolio performance, and capturing new market opportunities, particularly in North America and the digital gaming landscape.

Conclusion: Aristocrat’s Strategic Focus Pays Off

Aristocrat Leisure’s impressive financial performance for FY 2024 reflects the company’s strategic focus on expanding its market presence, optimizing operational efficiencies, and driving shareholder value. With continued investments in product innovation, market expansion, and strategic acquisitions, Aristocrat is well-positioned to sustain its growth trajectory in the coming years.

FAQs About Aristocrat Leisure’s FY 2024 Financial Results

1. What were the key highlights of Aristocrat Leisure’s financial results for FY 2024?

Aristocrat Leisure reported impressive financial results for the fiscal year ending 30 September 2024, with key highlights including:

A 20% increase in earnings per share (EPS).
Total revenue reaching AU$6.6 billion (US$4.31 billion), marking a 5% increase year-on-year.
EBITDA growth of 18.5% to AU$2.47 billion, with a margin increase from 33.1% to 37.4%.
Normalized net profit after tax and amortization (NPATA) up by 17% to AU$1.6 billion.

2. How did Aristocrat’s North American gaming operations perform in FY 2024?

North American gaming operations were a significant driver of Aristocrat’s growth, contributing to increased revenue and profitability. The company added approximately 7,100 new gaming units to its installed base, bringing the total to over 71,000 units. Margins in this segment rose to 58.9%, supported by strong market expansion, especially in regions like Quebec and Georgia.

3. What was the contribution of the digital division, Pixel United, to Aristocrat’s overall results?

Pixel United, Aristocrat’s digital gaming division, maintained steady performance with AU$1.75 billion in bookings and a margin increase to 36%. The social casino segment achieved over $1 billion in annual bookings for the first time, driven by the success of popular games like ‘Raid: Shadow Legends,’ which surpassed $2 billion in lifetime bookings.

4. Did Aristocrat Leisure announce any acquisitions in FY 2024?

Yes, Aristocrat made strategic acquisitions, including NeoGames and Roxor Gaming, to strengthen its presence in the iLottery and iGaming sectors. These acquisitions are expected to enhance Aristocrat’s digital capabilities and support expansion in key markets like North America and Europe.

5. How much did Aristocrat return to shareholders in FY 2024?

Aristocrat returned a total of AU$1.3 billion to shareholders through dividends and on-market share buybacks. The final dividend was AU$0.42 per share, bringing the total dividends for the year to AU$0.78 per share, reflecting a 22% increase compared to the previous fiscal year.

6. What was the performance of Aristocrat Interactive in FY 2024?

Aristocrat Interactive reported an 85% increase in revenue (in constant currency), driven by organic growth in iGaming platforms and expansion in North American and European markets. This strong performance highlights Aristocrat’s successful strategy in the rapidly growing digital gaming industry.

7. What are Aristocrat’s strategic priorities moving forward?

According to CEO Trevor Croker, Aristocrat is focused on:

Continuing its capital management strategy, including share buy-backs.
Enhancing portfolio performance across its core businesses.
Capturing new growth opportunities in digital gaming, particularly in the iLottery and iGaming sectors.
Expanding its market presence in North America and Europe.

8. How has Aristocrat’s EBITDA margin improved, and what factors contributed to this growth?

Aristocrat’s EBITDA margin increased from 33.1% to 37.4%, driven by cost control measures, operational efficiencies, and strategic investments. The company focused on optimizing its cost structures, resulting in higher profitability.

9. What are Aristocrat’s plans for further market expansion?

Aristocrat plans to continue expanding in the North American gaming market, explore new territories, and leverage recent acquisitions to grow its digital and interactive gaming divisions. The company is also eyeing opportunities in iGaming and iLottery sectors to fuel future growth.