The Aristocrat Leisure Limited (ASX: ALL) share price has sunk 8% after the company delivered its FY22 result.
Aristocrat Leisure is a major supplier of poker/gaming machines that are supplied to customers like casinos. It also has a growing digital gaming division.
FY22 result
Here are some of the highlights from the report for the 12 months to 30 September 2022:
- Normalised operating revenue increased by 17.7% to $5.57 billion
- Normalised EBITDA (EBITDA explained) went up by 20% to $1.85 billion
- Normalised net profit after tax (NPAT) grew by 30.7% to $1 billion.
- Statutory NPAT rose 15.7% to $948.5 million
- Total dividend of 52 cents per share, up 26.8%.
The company said that it has been successful with the execution of its growth strategy, leading to market share gains across key and emerging segments compared to FY21.
Aristocrat Leisure has continued to invest in people, its products and innovation to continue growth momentum.
It has also been investing in its online ‘real money gaming’ business, with the launch of Anaxi.
The business has continued to carry out its share buyback. It has done $340 million – 68% of its maximum of $500 million.
Outlook for the Aristocrat Leisure share price
Management said that the company expects to deliver underlying net profit after tax growth over the year to September 2023.
It’s expecting “continued strong revenue and profit growth from Aristocrat Gaming” thanks to market-leading positions and recurring revenue drivers in its gaming operations.
However, lower growth in bookings and profit from Pixel United is expected, compared to recent years.
In the medium-term, the business wants to keep gaining market share, deliver high quality, profitable growth, keep investing, diversify the business and management capital to support growth and maximise shareholder returns.
Aristocrat Leisure is one of the global success stories of the ASX. It has grown impressively overseas. How much bigger can it become? I’m not sure, it depends how much market share it can gain. The market doesn’t
The valuation doesn’t seem too demanding, and it continues to grow. However, some investors may be put off by the gambling nature of the business. There may be other, smaller ASX growth shares that could be better picks.
