Aristocrat Leisure (ALL) H2 2024 earnings summary

Executive summary

• Delivered 20% EPS growth and 17% NPATA growth year-over-year, driven by strong operational execution, cost optimization, and strategic progress, including the integration of NeoGames and the sale agreement for Plarium.

• Revenue increased 5% to $6.6 billion, with segment profits up 12% and positive operating leverage across all segments.

• Returned $1.3 billion to shareholders via dividends and share buy-backs.

• Completed the sale agreement for Plarium for up to $820 million, focusing future growth on regulated gaming, real money gaming, and social casino opportunities.

• Strong sustainability progress, including validated net-zero targets and enhanced responsible gameplay initiatives.

Financial highlights

• NPATA reached $1.6 billion, up 17% year-over-year.

• Fully diluted EPS increased 20% to 226.9c, supported by share buybacks.

• EBITDA rose 19% to $2.47 billion, with margin expansion to 37.4%.

• Total dividend per share increased 22% to 78.0c, with a payout ratio of 34%.

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

Outlook and guidance

• Expects continued NPATA growth for FY25 on a constant currency basis.

• Anticipates strong momentum in gaming operations, disciplined execution in Pixel United, and accelerated performance in Interactive towards a $1 billion revenue target by FY29.

• Sale of Plarium expected to dilute NPATA by mid- to high single-digit percentage points in FY25.

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