“Aristocrat Leisure’s (ALL) financial year 2024 result delivered a slight earnings beat but was broadly in line overall.” Raymond said.
“The outlook remains vague, with the company guiding for ‘positive’ constant currency net profit after tax and before amortisation (NPATA) growth in financial year 2025.
“On the result itself, sales grew 5% to $6.6 billion, driven by approximately 7,100 net unit adds to the Gaming Ops installed base in North America, bringing the total to approximately 71,000 units.
“The earnings before interest, taxes, and amortization (EBITA) margin expanded 340 basis points year-on-year to 32%, supported by positive mix and operating leverage across all three segments.
“NPATA increased 17% to $1,555.1 million, coming in 3% above our estimate and 1% above consensus. “Dividend per share (DPS) was 78 cents in financial year 2024.
“ALL also noted that the strategic review into the sale of remaining non-core assets (Big Fish) is still ongoing.
“With the Plarium sale now factored into our numbers, and forecasts aligned to the provided guidance, we have increased our EPSA estimates by 1% for financial year 2025-26F.
“We retain our ADD rating, with our target price rising to $73 (up from $67).
“For financial year 2025, we forecast a 4% free cash flow (FCF) yield and a 1% dividend yield,” Raymond said.
Aristocrat Leisure’s (ALL)
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