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Aristocrat delivers profit above guidance

Nicholas Grove  |  28 Nov 2012Text size  Decrease  Increase  |  

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Nicholas Grove is a Morningstar journalist.


Aristocrat Leisure (ALL) on Wednesday announced a full-year net profit before one-off items of $91.7 million, up 69 per cent on the previous year and slightly above guidance as well as Morningstar's expectations for a profit of $87.1 million.

The result is also in line with the company's recent change in its financial year-end from 31 December to 30 September, effective 30 September 2012.

The change was made to more closely align the reporting period with global business sales cycles, and assist with forecasting, cash flow management and investment decisions, the company said previously.

The electronic gaming machine maker also declared an unfranked final dividend of 2.0 cents a share, which brought total dividends to 6.0 cents a share. This represents a payout ratio of 73 per cent and is 2 cents below Morningstar's forecast for a payment of 8 cents.

Aristocrat said the final dividend is expected to be paid on 21 December 2012. The dividend reinvestment plan will also operate for this dividend, it said.

Earnings before interest and tax rose over 53.5 per cent and revenue grew 25.4 per cent over the year to 30 September 2012, the company said in a statement.

Commenting on the results, Aristocrat chief executive Jamie Odell the company has taken share from its competitors and grown sustainable value amid difficult conditions in key markets around the world.

"Our game content, hardware and systems products are continuously improving, as is our focus on targeting the most profitable markets and segments," Odell said.

"Recently announced acquisitions position us to compete in the expanding online and social gaming markets.

"These strategic steps, coupled with our investment in outstanding creative and technical talent, will deliver real value for the business over the medium term as the industry evolves."

Looking forward, Odell expects a further lift in operational performance over the current financial year despite sustained headwinds.

"Over the coming year, Aristocrat expects to continue to deliver growth across our global portfolio, fundamentally driven once again by higher game and product quality and exceptional operational performance," he said.