Aristocrat Leisure Ltd (ASX: ALL)
Aristocrat Leisure Ltd (ASX: ALL) achieved a record-breaking financial performance in FY24, with its stock price reaching a 52-week high. The Group delivered a normalized profit of approximately $1.5 billion, marking a robust 17% year-over-year increase in both reported and constant currency terms. This was underpinned by Aristocrat's world-class portfolio of gaming assets, disciplined execution of its growth strategy, and ongoing investments in talent, technology, and product innovation. Operationally, Aristocrat maintained strong cash flow generation and superior financial fundamentals, while adopting a targeted capital management approach. Following the $1.8 billion NeoGames acquisition in April 2024, Aristocrat returned to a geared position, signaling effective balance sheet management. Notably, $1.3 billion was returned to shareholders via share buybacks and dividends during the year.
FY24 was transformative, with the establishment of Aristocrat Interactive a new Real Money Gaming (RMG) vertical integrating NeoGames, Roxor Gaming, and the legacy Anaxi business. NeoGames enhances Aristocrat’s scale and competitive positioning in the online RMG market, offering long-term growth potential. Aristocrat also refreshed its strategic priorities, initiating a review of its casual and mid-core gaming assets, Plarium Global and Big Fish Games. A significant milestone post-period was the announcement to divest Plarium to Modern Times Group, a transaction expected to close in H1 2025.
Segmentally, Aristocrat Gaming delivered outstanding growth, driven by market share gains and the expansion of its North American Gaming Operations installed base. Pixel United achieved over $1 billion in social casino bookings for the first time, while IP partnerships bolstered RAID's performance. Aristocrat Interactive's successful launch and NeoGames integration further demonstrate the Group’s focus on scaling operations. Looking ahead, Aristocrat remains committed to delivering high-quality growth underpinned by its investments in innovation, IP protection, and operational synergies. With strong momentum across its core verticals and a focus on aligning resources to capture strategic opportunities, Aristocrat is well-positioned to drive sustainable long-term value for shareholders and stakeholders alike.
Computershare Limited (ASX: CPU)
Computershare Limited (ASX: CPU) has delivered strong results for FY24, with an increase in earnings, margins, and free cash flow. Management EPS grew by 9%, reaching 118 cents per share, while revenue expanded across all key segments including core fees, events, transactions, and margin income. This revenue growth, coupled with disciplined cost management, helped improve operating leverage and EBIT margins. The company generated over $600 million in free cash flow, allowing for increased shareholder returns through a record dividend of 82 cents per share and continued progress on a $750 million share buyback program, more than 60% of which has been executed.
Over the past five years, Computershare has successfully implemented a long-term strategy focused on simplification and growth, with significant progress in reducing complexity and capital intensity. The sale of the US Mortgage Services business and the separation of US Corporate Trust from Wells Fargo are key milestones. The company’s core divisions—Issuer Services, Corporate Trust, and Employee Share Plans—are high-margin and cash-generative, supported by strong technology capabilities that serve large and growing markets. Computershare manages over 35 million shareholder accounts, nearly $6 trillion in debt, and $230 billion in employee share plans, with margin income derived from processing significant payment flows, such as the $2 trillion handled in FY24.
For FY25, Computershare is optimistic about continuing growth despite a lower interest rate environment. Earnings guidance is affirmed, with expected management EPS of 126 cents per share, a 7.5% increase. The company has implemented hedging strategies to protect margin income, locking in yields on approximately $10 billion of balances, which will provide stability in the face of interest rate fluctuations. With a solid start to FY25, strong cash flow generation, and a focus on investing in technology and strategic M&A, Computershare is well-positioned for further growth and shareholder returns in the coming years.
Source: Company’s Report
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