Aristocrat Leisure Set To Soar With Proposed Acquisition Of Playtech

Industry News

& Articles

Aristocrat Leisure Set To Soar With Proposed Acquisition Of Playtech

  • FY21 Earnings Before Interest Tax, Depreciation, and Amortisation (EBITDA) of A $1.54 billion
  • FY21 Net Profit After Tax and Amortisation (NPATA) of $864 million
  • Currently trading at A $47.44, up 50.4 per cent over the year

Since producing its first ever gaming machine in 1953, Aristocrat Leisure Limited has had its sights set on providing the world’s leading markets with innovative video gaming solutions. Considering where it stands today, with a notable presence in Australia, South Africa, Russian, and the United States, its global presence easily places it among the world’s largest gambling machine manufacturers.

Though it has seen certain successes with its land-based gaming machine segment, Aristocrat continues to provide innovative solutions with its development of digital gaming services. As part of its global strategy to upscale its capabilities within the Real Money Gaming (RMG) market segment, the company has lately focused on an acquisition offer of Playtech PLC. The acquisition, announced at the start of last week, will prime Aristocrat to respond to growing market demand for online RMG and mobile gaming products. This strategy to expand its global capabilities effectively sees the company growing its total addressable market to over US $300 billion.

While its existing land-based gaming market commands just over US $150 billion, Aristocrat expects to bolster this amount by a further US $70 billion, by entering into the online RMG segment. Primarily, Aristocrat’s strategic entry into the online gaming market is driven by its analysis of expected demand from US players. A key figure that drives its forward momentum lies with the company’s assessment of the online RMG segment in North America reaching US $19.6 billion in 2025, at a continued annual growth rate of 48 per cent.

Playtech Acquisition Set to Boost Aristocrat Earnings for FY21

Aristocrat’s 100 per cent acquisition of Playtech has been proposed for a cash offer price at 680 pence per share. The offer is based on an approximation of Playtech’s share capital at £2.1 billion, or A $3.9 billion. With the acquisition expected for completion in the second quarter of 2022, Aristocrat anticipates Playtech to contribute noticeable mid-term revenue and earnings growth to its existing performance — especially with its key ability to provide in-demand business to business technology as a global gaming platform.

Together with its announcement of the Playtech acquisition offer, Aristocrat additionally provided shareholders with a trading update for its unaudited FY21 results. With FY21 NPATA at $864 million, the company sees an implied 81 per cent growth from FY20. It attributes its performance for the year to a number of market factors, including enhanced gaming operations activity, and bookings by users up 14 per cent for digital segments, and 25 per cent among daily active user bookings.

In total, the company’s unaudited FY21 EBITDA stands at A $1.54 billion, with A $4.73 billion in revenue earned for the year. However, another noteworthy feature of its FY21 performance lies with its strong operational cash flow, with balance at A $2.4 billion. This figure holds significance, especially as Aristocrat seeks to continue developing its growth strategy to meet rising demand domestically in Australia, as well as in the US. At the time of writing, Aristocrat’s share price is trading at an impressive 50.4 per cent higher over the past year.

Caroline Wong

Caroline Wong is a Research Analyst at KOSEC – Kodari Securities. She writes on markets and focuses on ASX Top 300 companies. Email Caroline at

Comment on this company

Latest Stories

Sandfire Announces 147Mt Mineral Resource Estimate For MATSA Mine Project

Sandfire today released an update of the Measured, Indicated and……

Piedmonts North American Lithium Mine To Restart In First Quarter Of 2023

Piedmont has confirmed the restart of spodumene (lithium) concentrate production……

Collins Foods KFC Brand Strength Boosts FY22 Sales, Profits and Dividends

The financial year ended 1 May 2022 saw Group revenue increase by……

More for you

EVN Down On Wet Weather Impacts And COVID Related Staff Absenteeism

COVID related staff absenteeism and wet weather has……

APA Group To Pay 28c Final Distribution For 6mths Ending June 2022

APA has announced a final distribution of 28 cents per stapled……

Arena REIT To Pay 4.05 Cents Quarterly Distribution On August 4

Arena REIT (Arena or ARF) is an internally managed stapled real estate Group……

Iluka To De-Merge Mineral Sands Assets To Focus On Rare Earths Operations

Iluka is set to become an Australian-based critical minerals company……

US Federal Reserve 0.75% Rate Rise Is The Largest Increase Since 1994

In a decisive move that was well received by markets around the globe……

RIO’s New $4.3B Gudai-Darri Mine Delivers First Iron Ore Shipment

RIO’s first greenfield mine site in the Pilbara in 10 years has delivered……

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.



KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.


Latest TV Commercial