Aristocrat Leisure Limited (ASX: ALL), a global leader in gaming and entertainment technology, has posted a robust performance for the first half of FY25, reporting 9% growth in revenue and a 6% increase in normalised NPATA to $733 million. This result highlights the group’s resilience, operational efficiency, and growth across all three core segments—Aristocrat Gaming, Product Madness, and Aristocrat Interactive.
Despite today’s share price dropping by 12.29% to $59.76, reflecting broader market sentiment and short-term volatility, Aristocrat’s fundamentals remain solid. The company boasts a market capitalisation of $42.61 billion, and its stock has still gained 49.65% year-on-year, significantly outperforming the broader market and sector benchmarks.
Aristocrat’s FY25 First-Half Snapshot: Strong revenue and profit growth, $733 million NPATA, $533M returned to shareholders, and confident outlook for continued market gains. [Aristocrat]
Group Financial Highlights
For the six months ended 31 March 2025:
- Operating revenue rose to $3.03 billion, up 9% year-on-year (5% in constant currency)
- EBITDA increased to $1.25 billion, up 13%, with margin improvement of 1.4 points to 41.1%
- Normalised NPATA reached $733 million, up 6%
- Reported NPATA, excluding discontinued operations, was $579 million, down 15.1%
- Operating cash flow surged 18% to $773 million
- Net debt rose to $425 million, compared to a cash surplus of $366 million in the prior period, reflecting capital returns
A 44-cent unfranked interim dividend was declared, up 22% from last year, with payments scheduled for 1 July 2025.
CEO Trevor Croker described the results as a “positive first half,” underscoring Aristocrat’s ability to deliver performance while investing in long-term growth. “We continue to see strong momentum in our business as we align our portfolio to capture the significant strategic opportunities in front of us,” he stated.
Table showing Aristocrat FY25 Half-Year Financials: Revenue and EBITDA up 9% and 12.8% respectively, NPATA rises 5.6%, $773M in cash flow, and stronger shareholder returns despite lower statutory profit. [Aristocrat]
Aristocrat Gaming: Leading Market Performance in North America
Aristocrat Gaming, the company’s land-based segment, delivered impressive growth in North America. Profit in the region rose 4%, driven by an expanded gaming operations footprint. Approximately 2,500 new machines were added during the period, taking the installed base to over 73,600 units. The company now holds over 42% market share in North America’s Class III and Class II operations.
Although fee per day declined slightly to US$52.73 due to mix changes, the business maintained clear revenue leadership with a 28% ship share. Product pipeline momentum remains strong with the expected launch of the Baron™ Portrait cabinet in 2H25.
However, international performance was softer. Revenue in the Rest of World fell 9% and profit declined 20%, largely due to weaker unit sales in Australia and New Zealand (ANZ) and intensified market competition ahead of new product launches.
Product Madness: Outperforming the Social Casino Market
Product Madness, Aristocrat’s mobile gaming division, continues to outperform. The business maintained a dominant 21% market share in the Social Slots segment, aided by focused investment in User Acquisition (UA) and operational efficiency.
Bookings rose 2% to US$570 million, driven by a 4% lift in Social Casino performance, while Social Casual bookings fell. The business improved margins by 310 basis points to 42.9%, thanks to increased direct-to-consumer revenues, which now make up 13% of Social Casino income.
Croker emphasised the division’s strength: “Our Social Casino franchises continue to outperform, supported by Live Ops, new content and disciplined UA spending.”
Aristocrat Interactive: Accelerating Digital Growth
Aristocrat Interactive delivered a standout performance following the full-period inclusion of NeoGames, significantly expanding its reach across iLottery and online gaming content. The division saw strong iLottery growth, led by the NeoPollard Interactive (NPI) joint venture in North Carolina and Virginia, helping maintain its market-leading position in the U.S..
Content distribution was a key growth driver, with Aristocrat titles now accessible via over 150 online operators across more than 175 markets and three U.S. states. The segment continues to push toward its FY29 target of US$1 billion in revenue, with momentum expected to accelerate in 2H25.
Capital Management and Strategic Positioning
Aristocrat returned $533 million to shareholders during the period through dividends and its on-market buy-back program. The company has completed a $1.85 billion buy-back and has now launched a new $750 million buy-back, scheduled through February 2026.
Despite the shift from a cash surplus to a modest net debt of $425 million, the group maintains strong liquidity of $2.2 billion and a healthy net debt to EBITDA ratio of just 0.2x, reflecting balance sheet flexibility.
Aristocrat has also finalised the divestment of Plarium, streamlining its portfolio around three complementary business lines with a clear strategic focus: regulated gaming, mobile social gaming, and real-money online interactive gaming.
Sustainability and Corporate Responsibility
During the half, Aristocrat advanced its sustainability agenda, particularly in climate action and responsible gaming (Safer Play). Initiatives included workforce engagement, emissions abatement groundwork, and preparation for mandatory climate disclosures.
Croker noted, “Our efforts directly support our ability to deliver sustainable results over the long term, and are focused on benefiting our people, customers and shareholders.”
Investor Outlook
Looking ahead to the full year ending 30 September 2025, Aristocrat expects to deliver NPATA growth in constant currency, with strong second-half contributions from:
- Continued market share gains in North America Gaming
- Operational momentum in Product Madness
- Expansion of Aristocrat Interactive through broader content and platform scale
Aristocrat’s strong fundamentals, innovative content, and disciplined capital allocation support a positive long-term investment outlook—even as short-term share price movements reflect broader market sentiment.
