Aristocrat Leisure's Impressive FY24 Financial Results and Strategic Moves
ALL (ALL) Share Update November 2024 Tuesday 12th
Aristocrat Leisure Reports 20% EPS Growth Amid Strong Performance
Aristocrat Leisure Limited (ASX: ALL) has announced a remarkable 20% growth in earnings per share for the fiscal year 2024, driven by strong operational performance and strategic execution.
Instant Summary:
- 20% growth in earnings per share for FY24.
- Revenue increased by 5% to $6.6 billion.
- EBITDA rose by 19% to $2.5 billion.
- Return of $1.3 billion to shareholders through dividends and buy-backs.
- Sale of Plarium Global Limited for up to US$820 million.
Financial Performance
Aristocrat Leisure Limited reported a 20% increase in earnings per share for the fiscal year ending 30 September 2024. The company's revenue grew by 5% to reach $6.6 billion, while EBITDA saw a significant rise of 19% to $2.5 billion. This growth was largely driven by the exceptional performance of Aristocrat Gaming in North America, which added approximately 7,100 net units to its installed base.
The company also achieved a 17% growth in normalised NPATA to $1.6 billion, reflecting effective execution of its growth strategy and cost optimisation efforts. Aristocrat Interactive and Pixel United segments contributed to this success, with strong revenue growth and improved profitability, respectively.
Strategic Developments
Aristocrat's strategic initiatives included the establishment of Aristocrat Interactive and the integration of NeoGames into its operations. This move is expected to bolster the company's presence in the iGaming sector across North America and Europe. Additionally, the company announced the sale of Plarium Global Limited for a fixed consideration of US$620 million, with contingent consideration of up to US$200 million, subject to financial targets over the next few years.
Proceeds from the sale will be used to fund Aristocrat's long-term growth strategy, aligning with its capital allocation framework. The transaction is anticipated to enhance revenue growth and margins in the coming years.
Operational Highlights
Aristocrat Gaming's North American operations were a standout, with a 9% increase in profit driven by growth in the Gaming Operations footprint. The company's market-leading fee per day remained strong, and it expanded into new markets such as the Video Lottery Terminal segment in Illinois and Quebec.
Pixel United achieved over US$1 billion in bookings for the first time, with a focus on optimizing user acquisition spend and operational efficiency. Aristocrat Interactive reported an 85% increase in revenue, driven by organic growth and the inclusion of NeoGames and Roxor results.
The strong financial results and strategic moves are likely to positively impact Aristocrat's stock price as investors respond to the company's robust performance and growth prospects. The return of $1.3 billion to shareholders through dividends and buy-backs further underscores the company's commitment to delivering shareholder value.
Investor Reaction:
Analysts are expected to react positively to Aristocrat's financial results and strategic initiatives, highlighting the company's ability to navigate mixed operating environments and deliver strong growth. The sale of Plarium Global Limited is seen as a strategic move to focus on core growth areas.
Conclusion:
Investors should consider Aristocrat Leisure's strong financial performance and strategic initiatives as indicators of the company's potential for continued growth. Monitoring the integration of NeoGames and the impact of the Plarium sale will be crucial for assessing future prospects.