Aristocrat share price: what’s the outlook following interim results?
We look at the company’s recent results as well as its full-year (FY21) outlook.
![We look at the company’s recent results as well as its full-year (FY21) outlook.](http://a.c-dn.net/c/content/dam/publicsites/igcom/uk/images/news-article-image-folder/bg bull and bear 546456456456.png/jcr:content/renditions/original-size.webp)
Aristocrat Leisure share price
Gaming company Aristocrat Leisure (ticker: ALL) delivered another strong set of results as part of its interim report, released Monday, revealing slighlty lower revenue but better margins and post-tax profits.
Investors bid the stock higher – if just a little – in response, with the Aristocrat share price rising over the last three sessions. ALL last traded at $41.12 per share, trades on a 62x earnings multiple and his risen ~30% YTD.
Below we breakdown the highlights from the H1 as well as look at the company’s current outlook.
Interim results in focus
On the top-line, Aristocrat said its revenue declined slightly in the half ending March 31, dropping 1% to come in at $2,229 million. Management lauded this only minor decline in the face of Covid-19 headwinds and foreign exchange fluctuations. And impressively, 80% of group revenues were derived from recurring sources.
Indeed, despite that revenue performance, on a normalised basis, the company reported growth across all key earnings metrics, including EBITDA, NPAT and EPS.
The gaming company saw EBITDA move up 6% to $750.3 million, while EBITDA margins crept up 2.3 percentage points, to 33.7%.
This flowed onto the bottom-line, with profits (NPAT) coming in at $362.2 million, an increase of 18.6%, while earnings per share (EPS) on a fully diluted basis came in at 56.8 cents per share. Finally, the company reported normalised post-tax profits of $411.6 million, a result that management said was 'largely driven by growth in Digital.'
The company also reported an interim dividend of 15 cents per share. Aristocrat did not pay an interim dividend in 2020.
The outlook
Looking forward, management said it was poised to record strong growth for the full-year, barring no changes in the current economic climate or industry conditions.
Some specifics were given, such as the expectation of continued growth across digital books, with it being noted that 'UA spend expected to be modestly above the historical range of 25% and 28% of overall Digital revenues.'
The company also said that it expected an effective tax rate of between 24-25% in FY21.
CEO and MD, Trevor Croker, commenting on the outlook for the company, said:
'We expect uncertain and volatile conditions to continue near term, and we are closely monitoring key factors including consumer sentiment and Gaming venue patronage.''
'Nevertheless, we enter the second half of fiscal 2021 with excellent momentum, resilience, and confidence with a strong balance sheet to continue to invest organically to grow share and accelerate growth through M&A in line with our rigorous criteria.'
Trade stocks like Aristocrat long and short with IG today
Create an IG account or log in to your existing account to get started now
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Live prices on most popular markets
- Forex
- Shares
- Indices