Aristocrat reports higher first-half profit on gaming sales and market share gains

Aristocrat Leisure reported revenue of AU$3.03 billion (US$2.19 billion) for the six months ended March 31, 2026, essentially flat when compared to the prior-year period, although revenue increased 6.4% on a constant currency basis.

EBITDA rose 6.2% year-on-year to AU$1.18 billion (US$854 million), with EBITDA margin improving to 36.9% from 34.7%. Net profit after tax climbed 8.4% to AU$794 million (US$575 million), while earnings per share on a fully diluted basis increased 11.6% to 117.9 cents.

The company also announced an interim unfranked dividend of AU$0.50 per share, representing a total payout of AU$301 million for the period. Record and payment dates were set for May 26 and July 1, respectively.

Gaming division drives results

Aristocrat Gaming generated revenue of AU$1.96 billion (US$1.42 billion), up 4.9% from the prior-year period, while segment profit increased 3.0% to AU$1.06 billion (US$767 million). Profit margin for the segment was 54.2%, down from 55.2% a year earlier.

The business was driven by “exceptional Outright Sales growth” and market share gains in North America, Australia, and New Zealand. Aristocrat added that expansion of its Gaming Operations installed base contributed to performance, with market share reaching 43% according to Eilers Gaming Supplier KPI Model data and internal analysis.

Aristocrat Chief Executive Officer and Managing Director Trevor Croker said: “Aristocrat delivered a strong first half, with clear progress across the business and market share gains in key segments.”

“Our earnings growth reflects disciplined execution, strong revenue momentum throughout our portfolio, and a continued focus on efficiency and extracting operating leverage. This result once again highlights our market leadership and scale as fundamental strengths of the business,” Croker added.

Product Madness reports lower revenue

Social gaming brand Product Madness posted revenue of US$546.2 million, down 4.1% year-on-year, while profit increased 3.6% to US$253 million. Profit margin rose to 46.3% from 42.9% in the prior-year period.

Social casino revenue increased 4.7% to US$541.7 million, while social casual revenue declined 91.4% to US$4.5 million after the sale of the social casual business earlier in the reporting period.

“Excluding Social Casual, which was sold early in the half, profit margin improved 1% to 47%, driven by continued revenue growth and lower platform-related costs due to higher direct-to-consumer sales,” Aristocrat said. “This was partially offset by higher user acquisition spend to support above-market growth.”

Direct-to-consumer sales accounted for 24% of Social Casino revenue, compared with 13% in the prior corresponding period. Product Madness maintained a 23% market share in the social casino slots segment, according to Sensor Tower data, public company reports, and Aristocrat estimates.

Interactive segment expands revenue

Aristocrat Interactive recorded total revenue of US$230.3 million, an increase of 6.5% year-on-year, while segment profit declined 10.6% to US$64.3 million. Segment profit margin fell to 27.9% from 33.2%.

The revenue growth was driven by iLottery operations and expansion of content operations, primarily in North America, partially offset by platform-related performance. Aristocrat said profit declined due to investment in newly acquired businesses and its decision to exit the white-label business.

Aristocrat said it expects to deliver NPATA growth for the full fiscal year ending September 30, 2026, on a constant currency basis. Expectations are based on continued revenue and market share growth in Aristocrat Gaming, Gaming Operations net unit growth at the upper end of its 4,000 to 5,000 target range, additional contribution from direct-to-consumer channels at Product Madness, and expansion of Aristocrat Interactive operations in North America and Europe.

Croker said the company will continue investing in artificial intelligence and capital management initiatives.

“Looking ahead, we are well-positioned for the full year and to capture the strategic opportunities in front of us. Our operating model is driving greater efficiency and scale, and we are increasingly leveraging AI to enhance our strategic advantages and transform our processes. We remain committed to our capital management strategy and our on-market share buy-back program,” he said.

The company also said it increased its on-market share buy-back program by AU$1 billion, bringing the aggregate buy-back authorization to as much as AU$2.5 billion, with the program extended through May 12, 2027.