Rising Costs and Market Competition Test Aristocrat’s Growth Momentum

Strong First Half Performance

Aristocrat Leisure Limited has delivered a solid first half result for FY2025, reporting a 9% increase in revenue to $3.03 billion and a 6% rise in normalised net profit after tax and amortisation (NPATA) to $733 million. This growth was underpinned by the full-period inclusion of NeoGames, market share gains across its diversified portfolio, and the tailwind of a strong US dollar.

Despite facing increased corporate costs, including higher legal expenses and a higher effective tax rate, Aristocrat demonstrated operational resilience and effective cost management. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 13% to $1.25 billion, with margins improving by 1.4 percentage points to 41.1%, reflecting the company’s ability to leverage scale and operational efficiency.

Portfolio Highlights Drive Growth

The company’s three core business lines, Aristocrat Gaming, Product Madness, and Aristocrat Interactive, each contributed to the positive momentum. Aristocrat Gaming expanded its North American footprint with approximately 2,500 net unit additions, growing market share to over 42% and maintaining leadership in the US market. While outright sales softened in anticipation of a new product launch, recurring revenue streams and adjacencies such as video lottery terminals and historical horse racing gained traction.

Product Madness maintained its dominance in the social casino market, increasing bookings by 4% despite a broader market decline. This was achieved through focused investment in user acquisition, live operations, and new content, alongside improved operational efficiency that boosted margins by over 3 percentage points.

Aristocrat Interactive benefited significantly from the NeoGames acquisition, with strong growth in iLottery and content distribution across North America and Europe. The segment’s expanding market access, covering over 150 major online operators and nearly 90% of the US market, positions it well for future scaling.

Capital Management and Sustainability

Aristocrat returned $533 million to shareholders through dividends and on-market share buy-backs, completing a $1.85 billion buy-back program and initiating a new $750 million program through February 2026. The company maintained a net debt position of $425 million with strong liquidity of $2.2 billion, preserving financial flexibility.

On the sustainability front, Aristocrat advanced its climate action and safer play initiatives, embedding these priorities into its long-term strategy. The company anticipates that foundational work on emissions abatement will translate into measurable environmental benefits in coming years.

Looking Ahead

CEO Trevor Croker expressed confidence in the company’s trajectory, highlighting the alignment of its portfolio to capture strategic opportunities. Aristocrat expects NPATA growth for the full year on a constant currency basis, with an acceleration in operating momentum in the second half driven by product rollouts and technology initiatives. The company remains committed to disciplined capital management and ongoing share buy-back programs.