Aristocrat Reports Strong Half-Year Financial Results for 2024
Aristocrat Leisure Limited announced its half-year financial results for 2024, revealing a 6% increase in revenue and a 15% rise in segment profits.
Shareholders have benefited from Aristocrat’s strong financial performance, with $828 million returned through dividends and share buybacks. Additionally, the company has announced an extra $350 million buyback, further demonstrating its commitment to delivering value to its investors.
Key Financial Highlights
The company reported a 16% growth in NPATA (Net Profit After Tax and Amortization), with expectations to maintain this growth for the full year.
Aristocrat’s gaming division and Aristocrat Interactive both showed strong market performance, with the latter seeing over 30% revenue growth, particularly bolstered by the NeoGames acquisition.
Aristocrat expects to expand its gaming operations installed base by approximately 6,000 units by the end of 2024. Despite a 2% revenue decline in the Pixel United segment, improved margins were achieved through cost optimization efforts.
The gaming operations business in North America reported a 1.2% year-over-year increase in revenue yields, highlighting the division’s steady growth.
Leadership and Strategic Outlook
Moti Malul, the former CEO of NeoGames, has been appointed as CEO of Aristocrat Interactive. His leadership is expected to leverage NeoGames’ integration, bringing substantial revenue opportunities through synergies with Aristocrat’s existing content and customer relationships.
The company plans to provide updated revenue and profit forecasts for NeoGames during its Investor Day on June 26.
Aristocrat is also investing in research and development (R&D), with the current year’s investment expected to be between 12-13% of revenue, aiming to reduce this to 11-12% in the mid-term. These investments are projected to yield $60 million in savings by the end of 2025.
Aristocrat is currently conducting a strategic review of its assets, including Big Fish Games and Plarium Global, aiming to enhance shareholder value. The company remains committed to sustainability, with a goal of achieving net-zero emissions by 2050.
Recommended