Diversified Strategy and Digital Investments Underpin Results
Aristocrat Leisure has reported a resilient first half for fiscal year 2025, with group revenue climbing 9% year-on-year to AU$3.3 billion (US$2.1 billion). Growth was underpinned by continued market share gains in North America, robust performance in its Social Casino and Interactive divisions, and an expanding presence in regulated online markets.
Strong Core Earnings Despite Mixed Global Performance
EBITDA rose 13% to AU$1.25 billion, increasing the EBITDA margin from 39.7% to 41.1%. Net profit after tax and before amortisation (NPATA) rose 6% to AU$733 million, reflecting the group’s ability to sustain earnings growth even amid uneven international results. However, reported profit remained flat at AU$664.9 million due to timing-related factors and non-operational adjustments.
The North American market continued to drive Aristocrat Gaming’s core performance. Profit from this region rose 4%, supported by the net addition of approximately 2,500 Class II and III premium units.
The installed base grew to over 73,600 units, helping to improve regional margins by 130 basis points to 58.1%. While outright sales in the region dipped by 5%, this was largely due to the delayed rollout of next-generation cabinets such as the Baron Portrait, which are expected to land in the second half.
Outside North America, however, the story was less positive. Gaming revenue fell 9%, with profit in ANZ declining by 20%. The region’s margin also contracted significantly, by 550 basis points to 42.1%, amid lower selling prices and softened demand ahead of H2 product launches.
Digital Divisions Deliver Momentum
The company’s Social Casino business, anchored by its Product Madness brand, bucked broader industry trends. Despite a 6% decline in the overall market, Product Madness reported a 2% increase in bookings to US$570 million and an impressive 310 basis-point rise in margin to 42.9%. Direct-to-consumer sales grew to 13% of segment revenue, reflecting greater platform control and improved monetisation strategies.
Aristocrat Interactive also delivered strong results, bolstered by the full-period contribution of NeoGames, which the company acquired to broaden its iLottery and content distribution reach. The NPI joint venture in the US gained traction, particularly in North Carolina and Virginia, where new iLottery launches added meaningful volume. Content was launched across over 175 jurisdictions through more than 150 operator partnerships, underlining Aristocrat’s global scale and strategic execution.
Capital Allocation and Shareholder Returns
In a demonstration of its strong financial position, Aristocrat returned AU$533 million to shareholders through dividends and share repurchases, completing its AU$1.85 billion buyback program and launching a new AU$750 million plan set to run through early 2026.
The company ended the period with AU$425 million in net debt and AU$2.2 billion in total liquidity. With a leverage ratio of just 0.2x, Aristocrat remains well-positioned to pursue M&A or strategic investments as opportunities arise.
A 44-cent interim dividend, up 22% from the prior corresponding period, was declared and will be payable on 1 July 2025. Investment in design and development remained a key focus, accounting for 13.3% of group revenue.
Looking Forward: Confident Outlook and Clear Strategic Targets
Management reaffirmed its guidance for full-year NPATA growth and remains confident in the trajectory of the business heading into the second half. H2 is expected to benefit from the launch of new cabinets, improved trading conditions in ANZ, and continued digital momentum.
Aristocrat reiterated its long-term FY29 goal of reaching US$1 billion in annual Interactive revenue—a figure that now appears increasingly attainable given its current growth trajectory and the global expansion of its digital footprint.
Context: A Foundation Built on Restructuring and Refocus
The positive outlook follows a transformative FY24, in which Aristocrat posted AU$6.6 billion in revenue and AU$1.56 billion in NPATA. That year saw a strategic refocus that included divesting Plarium, reallocating capital toward regulated online segments, and making bold digital bets—such as the acquisition of NeoGames—that are now paying off.
With a balanced portfolio spanning land-based gaming, social casino, and regulated online verticals, Aristocrat Leisure continues to prove its adaptability in a rapidly evolving global gaming environment.
