Aristocrat Leisure Limited reported a robust financial performance for the first half of fiscal year 2025, with group revenue rising 8.7% year-on-year to AU$3.03 billion (US$1.96 billion). The increase was driven by strength in the company’s land-based gaming operations, the ongoing momentum of its Product Madness social casino segment, and substantial gains in its Interactive division, powered in part by the integration of NeoGames.

Gaming operations lead in North America, but lag elsewhere:

On a normalised basis—excluding significant items and discontinued operations—net profit after tax and before amortisation of acquired intangibles (NPATA) grew 5.6% to AU$732.6 million. EBITDA climbed 12.8% to AU$1.25 billion, expanding the EBITDA margin to 41.1%, up from 39.7% in the prior corresponding period. Despite this, reported NPATA declined 15.1% due to increased legal expenses, a higher effective tax rate, and lower interest income.

Aristocrat’s CEO and Managing Director Trevor Croker stated in the official revenue report (pdf), “This was a positive result, illustrating the quality of Aristocrat’s portfolio and ability to grow through different operating environments while also investing for the future.”

Aristocrat Gaming continued to expand its installed base in North America, adding approximately 2,500 new Class III Premium and Class II units and surpassing 73,600 total units. This pushed the region’s market share above 42% and improved profit margins by 130 basis points to 58.1%. However, Outright Sales declined 5% in the region, mainly due to delays tied to the upcoming release of the Baron Portrait cabinet expected later in 2025.

Conversely, revenues outside North America fell 9% due to weaker unit sales and lower average selling prices, particularly in Australia and New Zealand (ANZ), where competitive pressures and buyer anticipation of new product releases impacted sales. Profits in the rest of the world dropped 20%, with margins shrinking by 550 basis points.

Despite these setbacks, Aristocrat retained its position as the top-performing supplier in the U.S., with 20 of the top 25 premium leased games and portfolio performance registering 1.4x the floor average, according to Eilers’ data.

Social casino and interactive drive digital expansion:

The Product Madness division, now Aristocrat’s core social gaming arm following the sale of Plarium, saw a 2% increase in bookings to US$570 million and delivered a 310 basis point rise in margin to 42.9%. Direct-to-consumer revenue grew to represent 13% of Social Casino earnings, and the segment outpaced the broader Social Slots market, which declined by 6% during the period.

Meanwhile, Aristocrat Interactive recorded a 141% revenue surge to AU$263.6 million, reflecting the full-period inclusion of NeoGames. Profit in this segment more than tripled to AU$113.6 million, driven by growth in iLottery—particularly via the NeoPollard Interactive (NPI) joint venture—and expanded content distribution through over 150 operators across 175 jurisdictions.

The company returned AU$533 million to shareholders through dividends and buybacks, completing a AU$1.85 billion repurchase program and initiating a new AU$750 million on-market buyback slated through February 2026. Net debt stood at AU$425 million with AU$2.2 billion in available liquidity.

An interim dividend of 44 cents per share was declared, up 22% year-over-year, payable on July 1, 2025. Investment in design and development (D&D) remained strong, at 13.3% of total revenue, underpinning Aristocrat’s continued push for innovation.

Looking ahead, Aristocrat reaffirmed its expectation of full-year NPATA growth and signaled stronger performance in the second half of FY25, driven by the rollout of new products and continued digital expansion. The company also remains committed to reaching its FY29 target of US$1 billion in Interactive revenue.

“We continue to actively pursue strategic M&A opportunities, in a disciplined and consistent manner,” Croker added. “We expect an acceleration in operating momentum in the second half of the year as we capitalise on product rollout and technology initiatives across our portfolio.”