Aristocrat Leisure (ALL) H2 2024 earnings summary

Executive summary

• Delivered outstanding group results for FY24, with EPS up 20% and NPATA up 17% to AUD 1.6 billion, reflecting strong operational performance, cost optimisation, and strategic progress, including the integration of Roxor and NeoGames.

• Revenue grew 5% to $6.6 billion, driven by market share gains in gaming operations, robust North America performance, and stable results in Pixel United.

• Returned $1.3 billion to shareholders via dividends and share buybacks.

• Completed the sale agreement for Plarium and continued the strategic review of Big Fish Games, with an impairment charge of $110 million taken for Big Fish.

• Advanced sustainability initiatives, including validated decarbonization targets and a new Empowering Safer Play pillar.

Financial highlights

• NPATA increased 17% year-over-year to AUD 1.6 billion; EPS grew 20% to 226.9c; total dividend per share increased 22% to 78.0c.

• Revenue increased 5% to $6.6bn; EBITDA up 19% to $2.47bn, with margin expansion to 37.4%.

• Operating cash flow remained strong at $1.77bn; capex was $494m, mainly supporting North America Gaming Operations.

• Returned $1.3 billion to shareholders via buybacks and dividends.

• $1.5bn spent on NeoGames acquisition; impairment charge of ~$110m related to Big Fish Games.

Outlook and guidance

• Expects NPATA growth for FY25 on a constant currency basis, driven by continued market share, revenue, and profit growth in Gaming and disciplined execution in Pixel United.

• Interactive segment targeting accelerated performance toward a $1 billion revenue goal by FY29.

• FY25 D&D investment expected at 12-13% of revenue; Pixel United UA spend guided at 21-24% of revenue.

• Ongoing focus on capital management, with buybacks to continue and no immediate change in capital returns post-Plarium sale.