Aristocrat Gaming Report Revenue and Earnings Growth in H1
Aristocrat Leisure has published impressive figures for the first half of its 2024 financial year with record figures from its gaming segment pushing up revenue and earnings growth.
Aristocrat announces revenue and profit in the first half of 2024.
LISTEN TO THIS ARTICLE:The company’s revenue for H1 was AU$3.27 billion, an increase of 6.1% from H1 last year. Prior to publishing results, Aristocrat explained that it would be changing the way it reports financial data following the acquisition of Neogames. It means that the company is reporting results for three main segments, Aristocrat Gaming, Pixel United, and Aristocrat Interactive.
Each segment saw year-on-year growth in H1, with Gaming leading the way, bringing in $1.83 billion in revenue, followed by Pixel United with $1.33 billion and Interactive with $109.4 million.
Overall, this resulted in not only increased revenue but also EBITDA and net profit, which CEO Trevor Croker hailed as “outstanding”.
This was once again an outstanding result, reflecting Aristocrat’s resilience and ability to grow share and drive profitability through different operating environments. We delivered strong revenue and EBITDA growth over the half. This was underpinned by record Aristocrat Gaming performance, led by an exceptional North American gaming operations result, and strong growth in Aristocrat Interactive, while Pixel United achieved improved profitability despite mixed market conditions.
Gaming Main Contributor to Growth
The gaming division saw an 8.3% year-on-year revenue increase, reaching $1.83 billion, a record half for the segment. This growth was driven by strong performance in North American gaming operations, including an expanded installed base and a robust portfolio, despite a 9% drop in unit sales in the region. Higher sales in other regions also contributed to the overall positive results.
Pixel United reported a 0.9% revenue increase to $1.33 billion, despite a decline in bookings. Aristocrat pointed out that its social casino franchises outperformed the market. Additionally, overall margin improved to 35.0%, due to a focus on optimizing user acquisition spend and enhancing operational efficiency.
The interactive segment saw a revenue increase of 52.2%, reaching $109.4 million. This growth was driven by customer experience services revenue and the continued scaling of iGaming in North America and Europe. Aristocrat highlighted new partnerships with major operators in the US, Canada, and the UK, the expansion of its games portfolio, and the impact of the Roxor acquisition.
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Profits Rise Despite Higher Costs
In regards to spending, the cost of revenue slightly decreased year-on-year to $1.37 billion. However, Aristocrat noted increases in several operating cost areas. Selling, general, and administrative expenses were the main outgoing at $527.6 million, while design and development costs reached $424.9 million. Finance costs were also higher at $79.2 million.
The revenue growth led to a 12.8% rise in pre-tax profit, reaching $961.7 million. After paying $250.5 million in tax, net profit increased by 8.9% to $711.3 million.
Aristocrat also mentioned other factors affecting the bottom line for H1, including an $83.8 million negative impact from foreign currency exchange and a $13.4 million loss on the fair value of an interest rate hedge. As a result, Aristocrat ended H1 with a comprehensive net profit of $614.1 million, up 39.0% year-on-year.
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