I have had a look at Aristocrat Leisure (ASX:ALL) and after conducting my analysis I have sold Telix Pharmaceuticals (ASX:TLX) and add Aristocrat Leisure (ASX:ALL) to my ASX 300 Model Portfolio. I also plan to sell James Hardie Industries (ASX:JHX) due to their recent ASX governance issues. But I will proved an update with all the details shortly.
Introduction:
Aristocrat Leisure Limited (ASX:ALL) are an Australia-based global entertainment and gaming content creation company. The Company offers a range of products and services, including electronic gaming machines, casino management systems, free-to-play mobile games and online real money games and has been a listed company on the ASX since 2006 and at the time of writing had a market cap of $42.0b. ALL generates revenue from three business segments spanning regulated land-based gaming (Aristocrat Gaming), mobile games publishing (Pixel United), and regulated online real money gaming (Aristocrat Interactive).
In FY24 ALL conducted a strategic review of part of their business which resulted in the sale of Plarium Global Limited for US$600m. They also acquired Nasdaq-listed NeoGames for $1.8bn, and have indicated that they are on the hunt for more acquisitions with the US based entertainment machine business Interblock valued at $1bn being in the crosshairs, according to one news article.
According to ALL the NeoGames acquisition was a strategic one offering synergies and competitive advantages to the Aristocrat Interactive business segment:
“The acquisition of NeoGames brought unique capabilities, competitive advantages and growth opportunities to Aristocrat, and will further enhance our scale, resilience and customer relationships in this strategically important segment over the coming years.”
ASX Market Release: 2024 AGM
ALL had total revenue of $6.6b in FY24 which was up on FY23’s $6.2b but due to intangible asset write downs, resulting from the NeoGames acquisition, reported NPAT of $1.3b was down on FY23’s $1.4b. Underlying NPAT for FY24 was $1.5b, up on FY23’s $1.3b.
Each business segment contributed to ALL’s strong financial performance, with Gaming leading in revenue and profit growth, Pixel United showing resilience in challenging markets, and Interactive achieving significant growth through strategic acquisitions and scaling efforts, ALL stated in their FY24 annual report.
Business Segments and…
