Aristocrat reports 81% growth in profits for FY21 amid Playtech takeover competition

Aristocrat Leisure announced Thursday its financial results for the fiscal year 2021, running from 1 October 2020 to 30 September 2021, and reported an 81% growth in profits in a year-over-year comparison, reaching $628 million; and a 43% increase in EBITDA. 

According to financial information published to the ASX, group revenue grew 14.4% year-on-year to $3.44 billion, with the Americas delivering a $302 million increase in profit, ANZ a $51 million improvement and digital a $87 million increase on the back of social casino operations.

The latest results are announced days after Playtech confirmed a new takeover approach from a group led by former Formula One team owner Eddie Jordan, which becomes the third interested party in acquiring the UK-based gambling software provider since an initial takeover agreement with Aristocrat announced last month, which Playtech’s board has recommended to shareholders. The new approach by JKO Play Ltd follows one from Playtech’s No.2 shareholder Gopher Investments.

Aristocrat's new results also showed operating cash flow increased 30.4% to $966 million while Adjusted EBITDA of $1.11 billion was 43% higher year-on-year. Aristocrat has declared a dividend for the 12 months ended 30 September 2021, worth $126 million.

The group invested in game design, development and technology during this period, which allowed the brand to grow share in both core segments and with its portfolio of games and products. 

The report mentioned several operational highlights including the diversification of the group’s portfolio over these past 12 months. 

In terms of the future of the company for the following fiscal year, to end in September 2022, the group is focused on enhancing its market positions in gaming operations, a growth in floor share across key gaming outright sales markets globally, further increase in Pixel United bookings, continued investment in design and development to drive long-term growth (with investment likely to be above the historic range of 11-12% of revenue), and further investments in core business capability. 

On this FY2021, Aristocrat CEO and Managing Director Trevor Croker said:  “The results and momentum we’ve delivered this year demonstrates the successful execution of our growth strategy. We continued to take share and deliver above-category organic growth over the year through sustained investment in outstanding products, people and capability, and further strengthening our business fundamentals”.

"Our progress is reflected in the share growth and margin expansion achieved across key segments during the year, with games and products and further diversification across our Aristocrat Gaming and Pixel United portfolios”, he added. 

“Aristocrat’s recommended offer to acquire Playtech plc, announced after period end, is another demonstration of our appetite to accelerate the implementation of our strategy through accretive M&A, in particular where it can deliver new capabilities and access to significant growth opportunities. We are focused on achieving necessary approvals, and continue to expect the acquisition to complete in the second quarter of calendar year 2022”.

“Aristocrat enters fiscal 2022 with excellent operational momentum, business resilience, and an appetite to continue to invest organically and through M&A to accelerate our growth strategy”, he concluded.