Aristocrat Leisure slumps on disappointing half-year result
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More news: Shares in Aristocrat Leisure have slumped 13% to $59.43 after the poker machine giant posted a disappointing half-year result.
It reported a 22% drop in statutory half-year profit amid higher costs and taxes, but lifted its interim dividend.
Normalised profit adjusted for discontinued businesses and significant items was up 5.6% to $732.6 million, below market expectations.
Aristocrat Leisure posts half-year profit drop, lifts dividend
The news: Poker machine giant Aristocrat Leisure has posted a drop in half-year profit amid higher costs and taxes but lifted its shareholder payout.
The numbers: Statutory profit for the six months to March was down 22% to $511 million. However, normalised profit adjusted for discontinued businesses and significant items was up 5.6% to $732.6 million. Revenue increased 8.7% to $3.03 billion and the company lifted its interim dividend to 44 cents a share, up from 36 cents a year ago.
The context: Aristocrat said the higher normalised profit reflected a resilient operating performance which included NeoGames for the full period, but this was partially offset by higher legal costs, lower interest income and a higher effective tax rate. Earnings improved 13% from a year ago, helped by increased margin in its main North America market.
In February, Aristocrat launched a new $750 million share buyback and outlined plans to repay debt and consider merger and acquisition activity following the sale of its Plarium Global business.
“This was a positive result, illustrating the quality of Aristocrat’s portfolio and ability to grow through different operating environments while also investing for the future,” managing director Trevor Croker said.
The company expects to deliver growth in net profit after taxes and amortisation over the full year reflecting continued market share gains from the gaming business, with strong revenue and profit growth expected in the second half.
The source: ASX
