Aristocrat Leisure reported solid half-year results with a 5.6% rise in normalised net profit after tax and before amortisation to $733 million, underpinned by growth across its gaming and interactive segments. The company also declared an unfranked interim dividend of 44 cents per share.
- Normalised NPATA up 5.6% to $733 million
- Revenue increased 8.7% to $3.03 billion
- Successful integration of NeoGames acquisition
- Divestment of Plarium completed in February 2025
- Interim dividend declared at 44 cents per share, unfranked
Strong Financial Performance Amid Strategic Portfolio Changes
Aristocrat Leisure Limited (ASX: ALL) has reported a robust first half for the 2025 financial year, delivering a 5.6% increase in normalised net profit after tax and before amortisation (NPATA) to $733 million. This growth was supported by an 8.7% rise in revenue to $3.03 billion, reflecting the company's diversified portfolio spanning regulated land-based gaming, social casino, and regulated online real money gaming.
The company’s results exclude the recently divested Plarium business, which was sold in February 2025, and fully incorporate the NeoGames acquisition completed in April 2024. These portfolio adjustments have reshaped Aristocrat’s business mix, with NeoGames contributing significantly to the Interactive segment’s revenue and profit growth.
Segment Highlights and Operational Insights
The Gaming segment saw revenue growth driven by expansion in the North American installed base, adding approximately 2,500 net units during the half-year and achieving a 42% market share. Despite a slight softening in average fee per day, the segment's profit margin improved due to favourable product mix and operating leverage.
Product Madness, Aristocrat’s social casino arm, outperformed the market with a 4% increase in social casino bookings and a margin uplift to 43%. This was achieved through operational efficiencies and increased direct-to-consumer sales, alongside successful launches such as the NFL-themed game.
The Interactive segment more than doubled its revenue to US$216 million, buoyed by the full six-month contribution from NeoGames and strong growth in iLottery and content distribution across North America and Europe. Margin expansion of over 5 percentage points underscores the segment’s improving profitability.
Strategic Investments and Financial Position
Aristocrat continued to invest strategically in design and development, user acquisition, and capital expenditure, with D&D costs representing 13.3% of revenue. Capital expenditure of $231 million supported growth in the gaming operations installed base, although slightly down from the prior period.
The company’s balance sheet remains strong, with net debt to EBITDA at a conservative 0.2x and liquidity of approximately $2.2 billion, including cash and available revolving credit facilities. The full repayment of the US$250 million Term Loan B facility during the period further strengthens financial flexibility.
Notable Charges and Dividend Declaration
Aristocrat recorded a $114.9 million impairment related to the restructuring of its Big Fish cash-generating unit, reflecting a strategic shift to focus on evergreen titles with reduced new game development. This non-cash charge highlights the company’s ongoing portfolio optimisation efforts.
The Board declared an interim unfranked dividend of 44.0 cents per share, payable on 1 July 2025, reflecting confidence in the company’s cash flow generation and capital management strategy. The dividend reinvestment plan will not operate for this interim dividend.
Looking Ahead
With a solid half-year performance, Aristocrat Leisure continues to leverage its global footprint and technology-driven content creation to sustain growth. The integration of NeoGames and the divestment of non-core assets like Plarium position the company well for future opportunities, although investors will watch closely how the Big Fish restructuring impacts longer-term earnings.
Bottom Line?
Aristocrat’s half-year results underscore resilience and strategic focus, but the Big Fish impairment and evolving market dynamics warrant close investor attention.
Questions in the middle?
- How will the Big Fish restructuring affect Aristocrat’s earnings in the coming years?
- What growth opportunities does Aristocrat see in the expanding online real money gaming market?
- Will the company resume its dividend reinvestment plan or pursue further share buy-backs?