FY2023: Aristocrat highlights strategic execution as profits soar
Revenue for the period stood at A$6.30bn, a 13% increase from the A$5.57bn recorded by Aristocrat in FY2022.
The company’s EBITDA also increased during the reporting period, rising 13.8% to A$2.11bn.
After normalising the results to account for the impact of acquisitions, Aristocrat said it achieved profit after tax of A$1.45bn. This stands as a 24.4% increase from the same period in 2022.
Aristocrat chief executive Trevor Croker said he was “proud” of the company’s financial results.
“The growth that Aristocrat delivered over the period demonstrates the ongoing resilience, competitiveness and diversification of our portfolio, and sound fundamentals in the markets in which we operate.
At the same time, we have been able to accelerate investment behind our successful growth strategy.
“The benefit of our strategic investments to grow and diversify Aristocrat was particularly evident in the strong 7% revenue and EBITDA growth in constant currency at group level over the year.
“This was underpinned by an exceptional gaming performance which more than offset an extended industry-wide moderation in mobile game demand, again highlighting diversification and scale as fundamental strengths of our business.”
Aristocrat bets on online growth
Going forward, the business said it would continue to invest in “attractive adjacencies and verticals” as it aims to build further resilience in its operating portfolio.This will include through its “build-and-buy” strategy in online RMG. Since announcing the approach in Q1 2022, the company has sought to invest in its own platform, while at the same time making acquisitions to speed up the process.
The most significant of these deals in 2023 was the business’ $1.2bn purchase of iLottery supplier NeoGames, a deal which is expected to close in H1 2024.
This followed on from an attempted acquisition of Playtech in 2021, which shareholders ultimately rejected.
Previously, the company also purchased B2B supplier Roxor Gaming in a deal that closed in February 2023.
In its FY2023 report, Aristocrat highlighted that its RMG division Anaxi had achieved several milestones since its launch in October 2022.
Those included signing content agreements with businesses representing 80% of the US iGaming market, it said.
Company opts to raise dividend
Following the results, Aristocrat announced it would be increasing its dividend to shareholders to A$0.34 per share, up from A$0.26 in the same period the previous year.
As part of the business’ capital management strategy, it has returned A$811m to shareholders over the past 12 months through dividends and buy backs.
Going forward, Aristocrat predicted continuing profit growth through to September 2024.
The company said this reflected its strong market share, as well as profit and revenue growth in its Aristocrat Gaming division.
However, the business warned it could see a possible moderation in consumer spending in certain key markets.
Aristocrat added it intends to invest in Anaxi as it scales its content portfolio and accesses more markets in both North America and Europe.