Aristocrat shares rocket on HY profit rise
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More news: Shares in Aristocrat Leisure soared at market open on the ASX after the gambling group reported a double-digit profit leap for the first half and lifted its interim dividend.
Aristocrat shares were up 9% to $44.41 by 10:25am AEST.
Aristocrat Leisure posts HY profit surge, hikes dividend
The news: Gambling company Aristocrat Leisure reported a double-digit profit leap for the first half, buoyed by a record performance in its gaming segment.
The numbers: Aristocrat posted first-half NPAT of $723.3 million, up 16.8% compared to the prior corresponding period. EBITDA grew 17.6% year on year to $1.2 billion, while revenue lifted 6.1% to $3.27 billion, boosted by a strong performance by the group's North American gaming division.
The Sydney-based company said $608 million in surplus cash was returned to shareholders in the form of on-market share buybacks over the six months to 31 March 2024. Its directors have also approved a $350 million increase to its $1.5 billion on-market share buyback program, which will run until February 2025.
Aristocrat declared an interim dividend of 36 cents per share, up from 30 cents a year earlier.
The stock last closed at $40.74 and over the last 12 months has increased 3.51%.
The context: Aristocrat said that growth in its gaming segment during the half was driven by its North America division, as well as strong outright sales in most of its 'rest of world' markets.
It also noted its mobile-first video games business Pixel United achieved improved profitability through "different operating environments". Meanwhile, Aristocrat completed its acquisition of Luxemburg-based gaming platform provider NeoGames during the quarter, which now forms part of the group's new Aristocrat Interactive business.
The group said it expects to deliver NPATA growth over the full year to 30 September 2024, due to continued strong market share, revenue and profit growth from its gaming segment.
The source: ASX announcement
