Aristocrat

Dividend Increase and Soaring Profits of Over AU$1.3bn Reported by Aristocrat Leisure

Industry leader Aristocrat has unveiled its FY2023 report, detailing the company’s soaring profits from September 2022 to September 2023. The online and land-based gaming supplier experienced a remarkable 53% increase in after-tax profits, accumulating a staggering AU$1.45 billion during the 12-month period. Nearly all financial indicators exhibited steady growth, with earnings per share showing the most significant increase of over 26%. Moreover, the reported revenue during that period was AU$6.30 billion, a 13% increase from the AU$5.57 billion recorded by Aristocrat in FY2022.

Such promising figures are hard to ignore. The future looks as bright as it can be for Aristocrat Leisure; not only is it booming in a sector it’s got many years’ worth of experience in, it clearly has a lot to offer to its customers. This rings particularly true for those who prefer registering at a safe real money casino.

Soaring Profits

Aristocrat credits the AU$143.3 million rise in post-tax profit for the Americas, where North America played a crucial role, for a portion of its impressive FY203 earnings. Another portion can be attributed to the 26% increase in North American Outright Sales units. Moreover, the installed base for Class III Premium and Class II Gaming Operations surpassed 64,000 units, contributing to an 8% baseline growth.

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Similar growth patterns were also observed in Class III operations in Asia and Europe. Notably, Asia witnessed substantial growth across all gaming sectors, especially after the relaxation of numerous Covid-19 restrictions. Locations like Macau reported a remarkable 400% year-on-year revenue increase in October.

Moreover, Aristocrat also emphasized that its Pixel United social games business significantly contributed to the company’s revenue stream, accounting for 42.1% of the total revenue for the year. While Pixel United demonstrated a 2.3% increase from the previous year, the business’s overall revenue share decreased from 46.5% in 2022. Aristocrat attributes this decline to the contraction in global mobile markets and its decision to exit the Russian market.

Continued Success

The past year marked numerous partnerships, appointments, and product launches for Aristocrat. During the September-to-September period, the company appointed a new CFO and was announced as the official slot machines of the F1 Heineken Silver Las Vegas Grand Prix, among other achievements. March of this year also saw the gaming supplier partner with Inspired Entertainment, allowing millions of NFL fans to wager on virtual teams both online and in retail.

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Aristocrat’s CEO and Managing Director, Trevor Croker, also highlighted the company’s robust free cash flow generation, utilized to support both organic and inorganic growth. Furthermore, $811 million in surplus cash was returned to shareholders through dividends and on-market share buybacks, aligning with the company’s capital allocation framework.

Despite mixed results in some key segments, these results underscore the resilience, competitiveness, and diversification of the company’s portfolio. Aristocrat’s growth strategy and the benefits of strategic investments, particularly in the Gaming segment, are evident in these successful outcomes.

Looking Ahead

Croker emphasizes Aristocrat’s enduring commitment to prioritize portfolio performance and explore strategic opportunities in the upcoming years. This strategic focus involves the eagerly anticipated acquisition of NeoGames, a move aimed at significantly enhancing their online Real Money Gaming (RMG) strategy. The anticipated completion of this strategic acquisition is set for the first half of the calendar year 2024.

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Aristocrat’s approach to this strategic initiative is encapsulated in its comprehensive “build-and-buy” strategy in the realm of online RMG. Since the introduction of this strategic approach in Q1 2022, the company has been diligently investing in the development of its proprietary platform. Simultaneously, Aristocrat has been strategically making acquisitions to expedite the growth and evolution of its online RMG initiatives.

A pivotal development in 2023 was the notable acquisition of iLottery supplier NeoGames, marking a significant investment of $1.2 billion by Aristocrat. This move is anticipated to fortify the company’s position in the online RMG sector and is slated to conclude in the first half of 2024.

This trajectory follows a previous attempt in 2021 to acquire Playtech, which, despite its strategic merits, was ultimately rejected by shareholders. Aristocrat has also demonstrated its commitment to continuous expansion through the acquisition of B2B supplier Roxor Gaming in a deal that concluded in February 2023. This underscore Aristocrat’s dedication to sustained growth, innovation, and leadership within the dynamic landscape of online Real Money Gaming.

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