Aristocrat Leisure has set a target of achieving A$1bn in annual Interactive revenue by the 2029 financial year, after reporting continued momentum across its digital operations during the first half of financial year 2026.
Revenue from continuing operations for the six months to 31 March hit A$3.03bn, marginally lower than the previous year, Aristocrat said. Gross profit was also slightly down year-on-year while net profit comparison was impacted by the sale of Plarium Global.
Aristocrat subsidiary Pixel United agreed to sell mobile game development company Plarium Global to Modern Times Group for up to $820m in November 2024. The deal was finalised in February 2025, meaning Plarium still contributed to the business in H1 of FY25, thus skewing profitability comparisons.
Despite the softer top-line comparison, Aristocrat pointed to continued growth across its Interactive division, setting the A$1bn target for FY29 on the back of H1 success. It said growth during the period was driven by its iLottery and content businesses, helped by investment in platform capabilities, operational scale and AI-led efficiencies.
Speaking on a post-H1 earnings call, Aristocrat CEO and managing director Trevor Croker talked up Interactive’s potential. He also referenced recent leadership changes in this part of the business, including the appointment of Dylan Slaney as Interactive CEO last September.
“In Interactive, momentum is building,” Croker said. “The executive leadership change last year, and the recent addition of high-calibre talent has positioned us well to deliver on growth opportunities. I’m highly encouraged by the recent progress.”
Aristocrat CEO talks up AI impact
Croker also said AI will form a major part of the company’s forward growth strategy. He said it is “leveraging AI to improve creativity, speed to market, and insights”.
“Our ongoing focus on embracing AI as a positive force for change across the company accelerated over the period, strengthening our foundations, enhancing our strategic advantages and opening up new opportunities with our customers,” he said.
“We expect to see further benefits across the group as we integrate these differentiated capabilities. AI is becoming a core capability, enhancing performance today and improving enterprise process into the future, which ultimately benefits both our top line and profitability.”
Gaming growth accompanies Interactive momentum
Breaking down the H1 performance, the Gaming business generated the most revenue at A$1.96bn, up 4.9% year-on-year. Aristocrat said this was helped by continued growth in its North America gaming operations. More than 2,000 new units were installed, increasing its total portfolio to over 77,200 machines.
Elsewhere, Product Madness revenue fell 10.6% to A$805.6m, though the company was keen to highlight a 5% rise in social casino bookings and “outperformed the market”. It also paid tribute to the performance of its Lightning Link, Cashman Casino and Heart of Vegas brands.
Finally, while there remains a positive feeling on Interactive, revenue in H1 remained flat at A$262m. However, this was 3.9% higher on a constant currency basis.
Aristocrat talked up its iLottery performance and scaling of content across North America, partially offset by falls in Platforms revenue following the strategic decision to exit the white labels market during the period.
Plarium sale skews bottom-line comparisons
Looking towards profitability, key expenses were relatively level year-on-year. Higher income in the ‘other’ category, coupled with the absence of impairment costs, meant pre-tax profit climbed 44.5% to A$1.12bn.
Income tax payments topped A$321.1m, leaving a net profit from continuing operations of A$798.5m, an increase of 56.3%. Net profit after tax and amortisation (NPATA) was also up 49.8% to A$867.1m.
However, when discontinued operations were entered into the equation, this muddied the water. Last year, profit from discontinued operations topped A$459.3m, whereas in H1 of 2025, just A$7m was accounted for. As such, net profit for the latest half-year was $805.5m, down 17.0%.
Going further, Aristocrat noted a negative foreign currency translation impact of A$241.9m, pushing bottom-line net profit down to A$561.6m. In contrast, H1 of FY25 had a positive impact of A$436.6m, reflected in the prior year’s A$1.41bn net profit figure. As such, bottom-line net profit from the entire business was 60.1% lower year-on-year.
Looking ahead, Aristocrat took a positive viewpoint. In addition to the long-term Interactive growth target, it expects full-year NPATA to increase, helped by continued momentum across Gaming and Interactive.
Croker struck an optimistic tone on the outlook. He said Aristocrat remains “well positioned to execute on our strategic priorities and sustain long-term growth”.
“We continue to see attractive opportunities across our businesses,” he said. “Our portfolio, people and product pipeline position us strongly for the future.”
