Aristocrat Leisure (ASX: ALL) has announced its FY19 result to the market this morning for the year to 30 September 2019.
Founded in the 1950s, the original Aristocrat Leisure business is based around casino games. Aristocrat is one of the largest players in the world being licensed in approximately 300 gaming jurisdictions in over 90 countries. The company now also has online digital games – both casino versions and free-to-play social games.
Aristocrat Leisure’s FY19 Result
Aristocrat Leisure reports two sets of results, the statutory results and the normalised results which excludes the impact of certain significant items relating to the acquisitions of Plarium and Big Fish.
Aristocrat’s normalised revenue increased by 22.7% to $4.4 billion which the company attributed to both its land-based and digital businesses with growth in Americas and ANZ.
Normalised EBITDA (click here to learn what EBITDA means) rose by 20.2% to $1.6 billion, although the EBITDA margin declined to 36.3% from 37.1% from FY18.
Normalised net profit increased by 22% to $752.8 million and normalised profit / earnings per share (EPS) grew by 22.3% to 118 cents.
Reported revenue grew by 25.3% to $4.4 billion and net profit after tax increased 28.8% to $699 million.
Aristocrat Dividend, Balance Sheet And Cashflow
Aristocrat’s Board decided to increase the full year dividend by 21.7% to 56 cents per share.
Operating cash flow increased by 16.2% to $1.09 billion and closing net debt improved by 9.3% to $2.22 billion.
Aristocrat Management Comments
Aristocrat CEO and Managing Director Trevor Croker said: “Sustained operating performance drove strong free cash flow generation, which was in turn invested to fund further growth, pay progressive dividend increases and provide significant balance sheet optionality for the future.”
Outlook
In FY20 the company is expecting further growth in land-based outright sales, expansion of its gaming operations installed base and growth of digital bookings from new games and expected acquisitions.
Aristocrat is also expecting its group structure change to start achieving non-Australian tax savings. It will recognise an approximately $1 billion deferred tax asset in the first half of FY20 which will be credited to the P&L and will be normalised.
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