LOGIN
REQUEST WALKTHROUGH
search
times
New call-to-action

Tags

See all

Articles

ALL

Aristocrat Leisure Ltd FY19 Results – Strong Result

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

Aristocrat Leisure Ltd (ASX: ALL) is an Australian gambling machine manufacturer. Aristocrat has a land-based business and digital business to provide their services. Aristocrat has a market capitalisation of A$21.5 billion.

Aristocrat Leisure - Strong Result

What are the results of Aristocrat FY19 report?

  • Operating revenue (normalised) for FY19 is A$4,397.4 million, up 22.7% from the previous year.
  • Net Profit After Tax (normalised) for FY19 is A$752.8 million, up 20.2% from the previous year.
  • Total dividend per share (normalised) for FY19 is 56.0 cents, up 21.7% from the previous year.
  • Earnings per share (fully diluted) for FY19 is 118.0 cents, up 23.3% from the previous year.

What are the drivers of this result?

The main driver of this positive result increased in demand from the Americas, Australia and New Zealand markets that mainly grew Aristocrat digital business activities. Aristocrat also increased investment in competitive product portfolios, particularly in terms of Design and Development and User Acquisitions.

What is the outlook for Aristocrat?

The general outlook for Aristocrat is positive.

Aristocrat management notes that in FY20 the company will continue to invest in Design and Development, land-based and digital portfolios, which should grow the business competitiveness.

Aristocrat management notes:

Sustained operating performance drove strong free cash flow generation, which was in turn invested to fund further growth, pay progressive dividend increases and provide significant balance sheet optionality for the future.

What is the market response?

The market response to Aristocrat FY19 results was positive. The results were released on the 20 November 2019, after the release Aristocrat share price increased by around 6%. Aristocrat has a P/E ratio in the mid-thirties and an annual dividend yield of 1.6%.

 


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action
New call-to-action

Company Articles

Looking for more Stock Recommendations?

Fill in your details to receive our special report: Top 3 Income Stock Recommendations for 2020.