Aristocrat Leisure Limited reports impressive financial results for FY21

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Aristocrat Leisure Rakes In Strong Earnings With FY21 Report

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Aristocrat Leisure Limited (ASX:ALL) reports impressive financial results for FY21, highlighted by 81 per cent growth in NPATA and update to anticipated Playtech acquisition.

  • FY21 Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) up 43 per cent to $1.5 billion
  • FY21 Net Profit After Tax and Amortisation (NPATA) up 81 per cent to $864.7 million
  • FY21 operating cash flow 30 per cent higher at $1.3 billion

Aristocrat Leisure Limited (ASX:ALL) published its FY21 results today, highlighting considerable growth across its operations. Impressively, the gaming platform provider grew its NPATA by 81 per cent to $864.7 million, while it presented operating cash flow above $1.3 billion. The company’s performance is largely attributed to strong recovery across its product portfolio, with Aristocrat Gaming revenue growing by 28 per cent, and Pixel United (formerly Aristocrat Digital) producing 15 per cent more revenue for the reporting period. This performance sits in line with the company’s growth strategy, with progress reported across all of its global business segments, and market leadership maintained through operational and product initiatives

Examples of these initiatives include growing market share in North America, launching new products in Australia-New Zealand, and with new games developed by Pixel United. True to its longstanding history as a gaming machine maker, Aristocrat continues to scale its business consistently as a leading provider of gaming cabinets. For FY21, Aristocrat Gaming reported global outright sales volumes of 25,759 units — contributing $2,269.6 million in revenue to the Group’s operations.

Similarly, Aristocrat sees a multiplying effect on its mobile platform market penetration, through the progress of Pixel United. Generating an impressive Average Bookings Per Daily Active User (ABPDAU) amount of $0.74 for FY21, Pixel United contributed total revenue of $1,845.1 million for the reporting period. With its ABPDAU up 25 per cent this year, Pixel United’s increased engagement and monetisation reflects the Group’s overarching focus on pressing forward with its growth strategy.

Focused on Long-Term Growth through Reinvestment and Product Development

Aristocrat’s focus on driving sustainable growth and aligning its global business to future trends also sees progress with an earlier announced acquisition offer of Playtech PLC in the United Kingdom. The offer proposes a 100 per cent acquisition of Playtech for a cash price of 680 pence per share — based on a valuation of Playtech share capital at A $3.9 billion. In its FY21 report, Aristocrat updated shareholders by dating the Playtech vote as scheduled for 12 January 2022. However, the Group has provided an interim financing agreement to provide funding certainty ahead of the completed acquisition proposal. While the Playtech acquisition is expected to finalise during the second quarter of 2022, Aristocrat anticipates Playtech’s mid-term revenue to significantly contribute to its own FY22 performance.

A summary of Aristocrat’s FY21 results sees the Group reporting EBITDA of $1,543 million — up 43 per cent compared to FY20. Impressively, Aristocrat has also managed 30 per cent higher operating cash flow at $1,328 million, against net debt of $805 million, down 49 per cent from the prior reporting period. Its investment priorities remain focused on supporting its long-term growth strategy, especially through re-investment in existing business performance. Additionally, its commitment to maximise shareholder returns sees it announcing FY21 final dividend of 26 cents per share, up from 10 cents for FY20.

The company provided no earnings guidance with its FY21 report, but maintains a positive outlook for FY22 under the assumption of no material changes to current global economic and industrial conditions. Its positive outlook for the coming financial year sees expectations of further growth in Pixel United bookings, as well as its continued investments contributing to the scale and velocity of its global operations. At the time of writing, the Aristocrat share price is trading at $45.93, up 33.32 per cent since this time last year.

Louis Mosmann

Louis Mosmann is a Private Wealth Client and Research Assistant at KOSEC- Kodari Securities. Louis covers macroeconomic events, global markets and ASX300 company announcements, allowing clients to make more informed investment decisions. Email Louis at l.mosmann@kosec.com.au.

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