Top ASX 100 Stock Successfully Executing its Strategy

Team Veye | 13-Nov-2024

This blue chip stock, one of the high growth stocks, giving strong returns this year has beaten the benchmark index by a yard. Undergoing strategic review, in order to focus on core assets, it has resorted to divestment with a view to remain among best growth stocks.

Aristocrat Leisure Limited (ASX: ALL)

Aristocrat Leisure Limited (ASX: ALL) announced on 12 November 2024 that its subsidiary, Pixel United Holdings Limited, has signed a binding agreement to sell Plarium Global Limited to Modern Times Group, a prominent mobile-first gaming company, for a total consideration of up to US$820 million. This includes a fixed base price of US$620 million, with US$600 million payable at closing and an additional deferred payment of US$20 million due in April 2026. Additionally, contingent consideration of up to US$200 million is possible, contingent on specific financial targets over 2025-2028. The transaction proceeds are earmarked to support Aristocrat’s long-term growth strategy and capital allocation framework, expected to boost revenue growth and margin expansion over time.

Aristocrat is one of the growing companies to invest in because its strategic focus remains on deepening its competitive advantages through leading financial fundamentals, strong customer relationships, and robust commercialisation capabilities. The company emphasizes Responsible Gameplay and maintains a compliance-driven culture, key differentiators in the industry. Research & Development (R&D) is a top priority, as Aristocrat continues to expand into adjacent markets, attract a diverse talent pool, and scale technology-driven initiatives. Leveraging branded content across various platforms and using data-driven customer insights for content development further positions Aristocrat as a global leader in the gaming sector. In the first half of 2024, Aristocrat made notable strides in its sustainability agenda, enhancing its commitment to Responsible Gameplay and obtaining Science Based Targets initiative (SBTi) approval for its science-based emissions reduction goals, which includes a target of net-zero by 2050. The company is steadily building the infrastructure needed to track and report on these sustainability targets, demonstrating its commitment to environmental responsibility.

Looking forward, Aristocrat, already among dividend paying stocks aims to optimize portfolio performance and seize key strategic growth opportunities, including integrating NeoGames and fully realizing the potential of Aristocrat Interactive. This strategy is expected to deliver meaningful shareholder value, further positioning Aristocrat for sustained growth in its next phase. By focusing on innovation, market expansion, and responsible practices, Aristocrat is well-positioned to capture long-term value and maintain a competitive edge in the dynamic gaming industry.

Source: Company’s Report

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