Aristocrat Leisure Ltd (ARLUF) (Q2 2025) Earnings Call Highlights: Strong Revenue Growth and ...

In This Article:

  • Revenue: Increased 9% to over $3 billion, 5% in constant currency.

  • NPATA: $733 million, up 6% in reported currency, 2% in constant currency.

  • EPSA: Increased 8% to $0.116 in reported currency.

  • EBITDA: 13% higher than the previous corresponding period (PCP).

  • Effective Tax Rate: 27%, up from 26% in the PCP.

  • Interim Dividend: $0.44 per share, an increase of 22% compared to the prior year.

  • Operating Cash Flow: Strong at 18% compared to first-half 2024.

  • D&D Investment: $402 million, representing 13.3% of revenues.

  • Share Buybacks and Dividends: $533 million returned to shareholders over the half.

  • North American Gaming Operations: Revenue up 1%, profits increased 4%, installed base grew 10%.

  • Social Casino Bookings: Increased 4%, with total revenues up 2% and segment profit up 9%.

  • Interactive Revenue Growth: iLottery revenue growth of 15%, content revenues grew 17%.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Aristocrat Leisure Ltd (ARLUF) reported a 9% increase in group revenues and a 12% growth in segment profit, showcasing strong financial performance.

  • The company successfully completed the divestiture of Plarium, generating a significant gain on sale and refocusing its mobile operations.

  • Product Madness delivered strong performance with continued share gain and impressive profit growth, driven by focused investment in user acquisition and operational efficiency.

  • Aristocrat Interactive experienced strong double-digit growth in content and the iLottery joint venture, contributing to overall positive results.

  • The company maintained a disciplined approach to cost management, allowing for strategic reinvestment and strong cash flow generation, with a new $750 million share buyback program announced.

Negative Points

  • Aristocrat Leisure Ltd (ARLUF) faced a softer fee per day and lower outright sales in North America and Rest of World, impacting growth.

  • Increased corporate costs, including higher legal expenses, and lower interest income due to the NeoGames acquisition and share buybacks, reduced overall growth.

  • Rest of World revenues decreased by 9% and profits by 20%, driven by lower unit sales in ANZ and Asian markets, along with negative operating leverage.

  • The company faced challenges in the Asia market with no new openings in the first half and regulatory hurdles delaying the release of Phoenix Link in Australia.

  • The pace of content rollout in Interactive was below plan due to strategic consolidation of remote gaming server platforms, causing delays.