Aristocrat Leisure (ASX:ALL) executives and directors used the company’s 2026 annual general meeting to highlight FY2025 growth, outline strategic priorities across land-based gaming, social casino and online real money gaming, and address shareholder concerns around recent share price underperformance.
Board outlines strategy, investment priorities and IP protection
Chairman Neil Chatfield said FY2025 was a “strong period” as the company aligned its enterprise portfolio with an updated strategy while continuing disciplined investment and innovation. He emphasized continued high levels of design and development investment, “exceptional creative talent,” enabling technologies to improve content deployment, and a stated ambition to gain share in every market in which Aristocrat competes.
FY2025 financial performance and capital returns
CEO and Managing Director Trevor Croker said FY2025 results reflected “normalized growth” excluding Plarium, which was sold during the year. Croker reported:
- Revenue of AUD 6.3 billion, up 11%, driven by organic growth, market share gains, and the inclusion of NeoGames for a full period.
- EBITDA margin expansion to 41.7% from 40.1%, reflecting “favorable mix and improved operating leverage.”
- Net profit before amortization of AUD 1.6 billion, up 12%.
- EPSA up 15%, benefiting from earnings growth and share buybacks.
Chatfield said the board authorized a final unfranked dividend of AUD 0.49 per share for the period ended 30 September 2025, taking the full-year dividend to AUD 0.93 per share, up 19% year over year. He also noted a new AUD 750 million on-market buyback announced last year was nearing completion, with the board authorizing an additional buyback of up to AUD 750 million, bringing the total program to AUD 1.5 billion through to March 2027. Since 2022, the company has bought back close to AUD 2.7 billion of shares, he said.
Segment updates: Gaming, Product Madness and Interactive
Croker said Aristocrat made organizational changes during the year, restructuring group functions including product and technology to increase coordination across businesses and improve speed to market, with early benefits expected to scale further as AI tools are integrated.
On divisional performance, Croker said:
- Aristocrat Gaming revenue grew 9%, with profit up 7%, supported by outright sales and market share gains.
- In North America, the install base increased by about 4,100 units to more than 75,000 units. Croker cited game launches including Phoenix Link and Spooniki Link, and rollout of the Baron Portrait Cabinet.
- Product Madness recurring social casino revenue grew 5% against a market decline of 9%, with segment profit up 12% as margins expanded from efficiency initiatives and increased direct-to-consumer revenue.
- Interactive benefited from NeoGames inclusion and organic growth in iLottery, with total revenue and profits (including the company’s share of the NeoPollard/Pollard Interactive joint venture) up 71% and 87%, respectively.
FY2026 outlook, iLottery wins, and portfolio moves
Croker said FY2026 year-to-date performance was “positive and consistent with our plans,” while reiterating that results are expected to be weighted to the second half due to timing of product launches in Gaming and Interactive.
In Gaming, he said the company was targeting net additions of 4,000–5,000 units in FY2026, weighted to the second half, and expected Fee Per Day to increase over the year with stable sequential trends in the first half relative to the second half of FY2025.
Interactive initiatives included expansion in U.S. iLottery and iGaming content. Croker said Aristocrat was awarded the Massachusetts iLottery contract from July 2026 and that the Michigan iLottery, previously shared via a joint venture, was awarded to Aristocrat Interactive on an exclusive basis from July 2026. He also referenced additional state opportunities, including Colorado launching an RFP.
For iGaming content, Croker said Lightning Link for Aristocrat Interactive was planned for later in the year and separately described anticipated market interest around a release “expected around July 2026.” He noted content revenue growth was tracking below aspirations, but management remained focused on opportunities ahead and investing to support a FY2029 target of $1 billion in Interactive revenue. The company plans to provide more detail at an investor presentation in the second half of FY2026.
Croker also said the company was planning to exit its Interactive white label business, primarily in the UK and Europe, with completion expected within the financial year, noting the business contributed $36 million of Interactive revenue in FY2025 but generated “negligible profit” and did not meet return hurdles.
Shareholder Q&A: share price concerns, buybacks, responsible play and AI
Chatfield addressed shareholder-submitted questions about share price underperformance, saying management shared investor frustration. He attributed recent pressure partly to “stock and sector rotation away from software and gaming stocks” perceived to be challenged by AI, adding Aristocrat viewed AI as an “enabler” and would focus on controllables such as performance and cash generation. He said the company returned AUD 1.4 billion to shareholders over the past year through dividends and buybacks.
Asked about buyback pace amid a lower share price, Chatfield said buybacks were now “firmly part” of capital management and “highly accretive,” while noting blackout periods can limit when the company can buy. He said the company would act accordingly within constraints.
On responsible play, Croker discussed initiatives including a U.S. “Know Your Max” campaign and Australia-focused hardware solutions such as FlexiPlay, described as an optional bank and time meter feature, which he said had grown to more than 11,000 installed units in New South Wales. He also referenced continued work on a digital wallet trial in New South Wales, with an updated submission to government.
On AI, Croker said Aristocrat had an AI governance program and was using AI to improve speed to market, testing and quality control, as well as in areas such as asset creation and employee safety analytics.
Croker also addressed a shareholder query on the Awager acquisition, describing it as a video streaming platform for regulated gaming that streams slot content from physical machines to players online in legal markets such as the U.S. and Europe. He said it was early-stage and not profitable, with Aristocrat investing to scale it as part of a midterm growth opportunity.
Regarding the Light & Wonder settlement, management said the settlement involved Dragon Train and Jewel of the Dragon, and Croker noted Light & Wonder must use “best efforts” to address the install base. Chatfield said the company expected to recognize AUD 45 million of legal cost recovery in corporate costs relating to legal costs incurred to date, with the remainder of the $127.5 million U.S. settlement expected to be booked as a significant item.
The meeting also included director re-election remarks and remuneration updates. People and Culture Committee Chair Kathleen Conlon said FY2025 executive short-term incentive outcomes ranged between 91% and 97% and LTI vested 100%. She outlined changes effective FY2026, including an LTI structure comprising 80% financial measures (split equally between TSR and EPS) and a new 20% sustainability condition aligned to governance and ethics and “empowering safer play.”
About Aristocrat Leisure (ASX:ALL)
Aristocrat Leisure Limited, together with its subsidiaries, operates as a gaming content and technology company in Australia and internationally. The company designs, develops, assembles, distributes, sells, and services gaming content, platforms, and systems, including electronic gaming machines, casino management systems, and free-to-play mobile games. It also offers pixel united, a mobile-first games powerhouse; aristocrat gaming, a gaming content; and Anaxi, an immersive and interactive digital entertainment experience content.
