Aristocrat Leisure (ALL) H1 2025 earnings summary

Executive summary

• Group revenue grew 9% year-over-year to over $3B, with all segments contributing and strong cost management; NPATA increased 6% to $733M, supported by NeoGames inclusion and resilient operations.

• Segment profit rose 12% to $1.5B, driven by positive operating leverage and disciplined execution.

• Completed divestiture of Plarium, generating a significant gain and refocusing on core operations; results restated to reflect continuing operations.

• Returned $533M to shareholders via buybacks and dividends in H1 2025; completed $1.85B buyback and authorized a new $750M program.

• Strategic focus on innovation, content development, and defending IP, with ongoing litigation progressing favorably.

Financial highlights

• EBITDA rose 13% year-over-year to $1,248.5M, with margin expansion to 41.1%.

• Operating cash flow up 18% to $773M; interim dividend of 44c per share, up 22%.

• EPSA up 8% to 1.16; fully diluted EPS up 2.5% to 105.6c.

• Net debt/EBITDA at 0.2x, with strong liquidity of $2.2B.

• Significant items included gain on Plarium sale, Big Fish restructure costs, and NeoGames integration costs.

Outlook and guidance

• Expects NPATA growth for FY25 (to 30 Sep 2025), with improved H2 performance and continued market share gains.

• Anticipates sequential improvement in fee per day and installed base growth, supported by new cabinet launches.

• Targeting $1B Interactive revenue by FY2029, with further scaling of content and market access.

• D&D investment expected at 12.5–13.5% of revenue; Product Madness UA spend at 18–21% of revenue.

• Normalised effective tax rate forecast at 26–28%, reflecting regional mix and acquisition transitions.