• EPS Growth: 20% increase.
• Revenue Growth: 5% increase to $6.6 billion.
• Segment Profits Growth: 12% increase.
• MPA Growth: 17% increase to $1.6 billion.
• EBITDA Growth: 19% increase in reported currency.
• Dividend: Final dividend of $0.42 per share, total $0.78 per share for the year, a 22% increase.
• Net Annualized Run Rate Savings: Exceeded $90 million for FY24.
• Gaming Operations Growth: 11% increase in North America.
• Social Casino Bookings: Exceeded $1 billion.
• Pixel United Revenue: Stable with a 1% decline.
• UA Spend: 21.6% of revenue.
• Interactive Revenue: Reflects inclusion of Neogames for five months.
• Cash Flow: Strong operating cash flow generation.
• CapEx Investment: Driven by North America growth and Las Vegas Integration Center.
• D&D Investment: $848 million, 12.8% of revenue.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Aristocrat Leisure Ltd (ARLUF) reported a 20% growth in EPS, demonstrating strong financial performance.
• Revenues increased by 5% and segment profits grew by 12%, showcasing effective cost management and positive operating leverage.
• The company achieved significant strategic milestones, including the integration of Rocka and completion of the Neogames transaction.
• Pixel United's social casino business exceeded $1 billion in bookings, indicating strong market presence and growth.
• Aristocrat Leisure Ltd (ARLUF) returned over $3 billion of capital to shareholders through dividends and share buybacks, reflecting strong shareholder value creation.

Negative Points

• Lower profits were reported in the Australia and New Zealand (A NZ) segment, impacting overall regional performance.
• The company took an impairment charge of approximately USD110 million related to Big Fish Games, indicating challenges in this segment.
• Casual bookings declined by 14% for the year, highlighting softness in this area of the business.
• The sale of Plarium is expected to be mid to high single-digit percentage points dilutive to NPAT A in FY25 on an annualized basis.
• There is ongoing uncertainty and potential delays in the strategic review of the remaining casual gaming assets, including Big Fish Games.

Q & A Highlights

Q: Can you explain the commercial effort behind the gaming ops net installs of over 7,000 units and its revenue implications? A: Hector Fernandez, CEO of Aristocrat Gaming, explained that the performance was driven by the scale of the portfolio without any unusual deals. The installs were uniform across the second half, and the full scale of these units will contribute to fiscal '25. The company is excited about new products like Phoenix Link and the Baron Upright cabinet, which received positive feedback.

Q: How did you manage to keep CapEx relatively stable despite doubling the volume of installs? A: Sally Denby, CFO, noted that the mix of products and improvements in the supply chain helped maintain CapEx levels. The company has cycled through high-priced inventory, and operational efficiencies from the new Las Vegas Integration Center also contributed.

Q: What is the outlook for the profit margin in the interactive segment following the Neogames consolidation? A: Trevor Croker, CEO, stated that while they won't achieve gaming-type margins, they expect to be above Pixel United's margin percentages. The company is still in an investment phase but anticipates margin expansion as the business grows and scales.

Q: Can you elaborate on the significant increase in class two units in the second half? Is this sustainable? A: Hector Fernandez explained that the increase was due to investments in class two D&D development, leading to improved performance and market share gains. However, class two tends to be lumpy due to the longevity of deals, so while the performance is strong, it can vary.

Q: How do you view the trend of casinos increasing their leased floor mix, and does it affect your outlook for net ads? A: Hector Fernandez acknowledged the trend of casinos allocating more to recurring revenue products, driven by performance. Aristocrat aims to take share in these opportunities by ensuring they have the right hardware, technology, and game content to meet customer needs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.