Aristocrat Leisure (ALL) Investor Day 2024 summary

Strategic direction and growth plans

• Focus on three core businesses: Gaming, Pixel United, and Interactive, each targeting large, growing addressable markets exceeding $400 billion.

• Aspires to double group value every five years, leveraging organic growth and disciplined M&A, with a strong track record of outperformance and a 12% revenue CAGR since FY18.

• Strategic review of casual, mid-core, and RPG mobile assets underway to optimize the portfolio and align with slot-focused, regulated gaming growth.

• Continued investment in D&D (11–13% of revenue) and technology to accelerate content deployment, cross-channel synergies, and innovation.

• Maintains a strong balance sheet, targeting a net debt leverage ratio of 1.0–2.0x and returning cash to shareholders via dividends and buy-backs.

Financial guidance and performance

• Since FY2018, revenue has grown at a 12% CAGR, with segment profits at 11% CAGR, and return on capital invested rebounding to 30% in FY2023.

• 1H24 group revenue reached A$3.5bn, with segment profits of A$1.0bn for Gaming, A$0.5bn for Pixel United, and A$30.3m for Interactive.

• Interactive division targets at least US$1bn in revenue by FY29, implying a five-year CAGR above 20%.

• Pixel United delivered 12% revenue CAGR and 11% profit CAGR over five years, with a shift toward retention and LiveOps to sustain performance.

• Over $2.2 billion returned to shareholders via dividends and buybacks, while maintaining high reinvestment in growth priorities.

Business developments and innovation

• NeoGames acquisition completed, forming Aristocrat Interactive, a unified brand with global scale in iLottery, iGaming, and Gaming Systems.

• Transition to an enterprise-level, portfolio-driven product strategy, enabling faster, more efficient content deployment across channels and geographies.

• Leveraging AI, unified tech stacks, and branded IP to reduce development time and enhance agility, with cross-deployment of gaming, Pixel, and interactive titles.

• NFL partnership and digital-first content strategy used to attract new demographics and rapidly iterate successful features across platforms.

• Interactive business leverages Pariplay’s aggregation network (170+ operators) and managed services to bundle solutions and maximize share of operator wallet.