ARISTOCRAT LEISURE LIMITED
ABN 44 002 818 368
2021 HALF YEAR
PROFIT ANNOUNCEMENT
RESULTS TO BE RELEASED
TO THE MARKET
ANNUAL INFORMATION GIVEN TO THE ASX
UNDER LISTING RULE 4.2A
ARISTOCRAT LEISURE LIMITED
BUILDING A PINNACLE OFFICE PARK
85 EPPING ROAD
NORTH RYDE NSW 2113
2021 HALF YEAR
PROFIT ANNOUNCEMENT
CONTENTS
Appendix 4D - Results for announcement to the market
Review of Operations
2021 Half-year Financial Statements
- Statement of profit or loss and other comprehensive income
- Balance sheet
- Statement of changes in equity
- Cash flow statement
- Notes to the financial statements
Directors' Declaration
Auditor's Report to Members
Directors' Report
Auditor's Independence Declaration
Aristocrat Leisure Limited Half-year report
31 March 2021
ARISTOCRAT LEISURE LIMITED
A.B.N. 44 002 818 368
APPENDIX 4D
Half-Year Report
Half-year ended: 31 March 2021
Previous corresponding period: 31 March 2020
Results for announcement to the market
31 March 2021 | ||||
Statutory results | $'m | |||
Revenue from ordinary activities | down | 1.0% | to | 2,229.7 |
Profit from ordinary activities before tax | up | 21.4% | to | 461.5 |
Profit from ordinary activities after tax | down | 73.5% | to | 346.5 |
Normalised results1 | ||||
Operating revenue | down | 1.0% | to | 2,229.7 |
Profit before tax | up | 19.1% | to | 480.9 |
Profit after tax and before amortisation of acquired intangibles | up | 11.8% | to | 411.6 |
Dividends | |||
Record date for | |||
Amount per | Franked amount | determining entitlements to | |
security | per security | dividends | |
Current year - 2021 | |||
- Interim dividend | 15.0c | 15.0c | 31 May 2021 |
Previous year - 2020 | |||
- Interim dividend | 0.0c | 0.0c | Not applicable |
- Final dividend | 10.0c | 10.0c | 2 December 2020 |
For further explanation of the above figures please refer to the Review of Operations and market presentations. Other financial information required by the Appendix 4D is contained in the financial statements.
1 Normalised results exclude the impact of certain significant items which are either individually or in aggregate material to Aristocrat and are outside the ordinary course of business or part of the ordinary activities of the business but unusual due to their size and nature. Details are provided in the Review of Operations.
Aristocrat Leisure Limited
Review of Operations
Business Strategy and COVID-19 Recovery
Growth strategy enhances resilience
Aristocrat's strategy aims to deliver high quality, sustainable profit growth by continuously improving the business' product portfolios and operational competitiveness - regardless of market conditions and other external factors.
Aristocrat achieves this by investing in great people, product and capability, building on deep foundations of culture, governance and financial rigour. The Group also has a track record of accelerating progress through accretive M&A, in line with rigorous, established investment criteria.
Our focus on long-term performance means that addressing material Environmental, Social and Governance (ESG) factors is an important part of our approach. Aristocrat further improved its business over the reporting period by making progress across a range of ESG issues including responsible gameplay, diversity and inclusion and employee wellbeing.
As Aristocrat continues to navigate volatility in the global operating environment as a result of COVID- 19 and other factors, the Group's strategy remains highly relevant. In fact, over the six months to 31 March 2021, the business' operational and financial strengths enhanced Aristocrat's resilience and ability to sustain market-leading investment levels behind the strategic drivers of people, product and performance - at a time when many others reduced investment.
Performance reflects investment choices
The fundamental choices Aristocrat made in the context of COVID-19 disruptions are reflected in the share growth and margin expansion achieved across Digital and key Gaming segments in the six months to 31 March 2021, and the double-digit increase in normalised Group NPATA delivered in the same period. In particular, Aristocrat has
continued to invest in its core, differentiating strategic drivers, including:
- Additional 'People first' employee wellbeing initiatives, flexibility and benefits for
Aristocrat's diverse and growing global team.
- Further leadership development and capability programs, along with targeted
talent attraction and retention initiatives.
- Significant expansion in Customer Experience (CX) operations in Gaming, to unlock new value streams by delivering customers and Gaming patrons connected products and
services in line with Aristocrat's growth strategy.
- Priority focus on building the Digital product
pipeline to sustain long-term growth ahead of category, including through recent tuck-in acquisitions and boosting M&A capability.
- Continued targeted investment in User
Acquisition (UA) spend to support long-term profitability.
- Maintenance of Aristocrat's market-leading investment in game design, development, and technology throughout the period - including continued investment in adjacencies to drive
long-term growth, and
- Further investment in strategic skillsets including in data, cyber security, and technology capabilities.
The Group enters the second half of the 2021 fiscal year with excellent momentum, flexibility and resilience, and a balance sheet that continues to provide full strategic optionality.
Aristocrat's global team is aligned behind a refreshed growth vision, with established momentum and the confidence to continue to invest and accelerate execution in the period ahead.
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Aristocrat Leisure Limited
Review of Operations
Group Performance
Earnings Summary
Key performance indicators for the current period and prior period are set out below.
Constant | Variance vs. 2020 | ||||
currency2 | Constant | ||||
Six months to | Six months to | Six months to | currency2 | Reported | |
A$ million | 31 March 2021 | 31 March 2021 | 31 March 2020 | % | % |
Normalised results1 | |||||
Operating revenue | 2,493.7 | 2,229.7 | 2,251.8 | 10.7 | (1.0) |
EBITDA | 845.0 | 750.3 | 707.6 | 19.4 | 6.0 |
EBITA | 692.8 | 612.6 | 550.8 | 25.8 | 11.2 |
NPAT | 410.8 | 362.2 | 305.9 | 34.3 | 18.4 |
NPATA | 466.4 | 411.6 | 368.1 | 26.7 | 11.8 |
Earnings per share (fully diluted) | 64.4c | 56.8c | 47.9c | 34.4 | 18.6 |
EPS before amortisation of acquired intangibles (fully diluted) | 73.1c | 64.5c | 57.7c | 26.7 | 11.8 |
Interim dividend per share | 15.0c | 15.0c | 0.0c | n/a | n/a |
Reported results | |||||
Revenue | 2,493.7 | 2,229.7 | 2,251.8 | 10.7 | (1.0) |
Profit after tax | 392.2 | 346.5 | 1,305.2 | (70.0) | (73.5) |
NPATA | 447.8 | 395.9 | 1,367.4 | (67.3) | (71.0) |
Balance sheet and cash flow | |||||
Net working capital/revenue3 | 3.8% | 4.1% | 6.1% | (2.3)pts | (2.0)pts |
Operating cash flow | 403.4 | 358.2 | 620.0 | (34.9) | (42.2) |
Operating cash flow normalised4 | 478.8 | 425.1 | 620.0 | (22.8) | (31.4) |
Closing net debt5 | 1,590.4 | 1,330.2 | 2,250.5 | 29.3 | 40.9 |
Gearing (net debt/consolidated EBITDA5,6) | n/a | 1.2x | 1.4x | n/a | 0.2x |
- Normalised results are statutory profit (before and after tax), excluding the impact of certain significant items detailed on page 9.
- Results for 6 months to 31 March 2021 are adjusted for translational exchange rates using rates applying in 2020 as referenced in the table on page 13.
- Revenue based on 12 months to 31 March.
- Normalised operating cash flow excludes the impact of certain significant items are referenced on page 11.
- Net debt excludes lease liabilities recognised under AASB 16 from 1 October 2019.
- Consolidated EBITDA for the Group as defined in Aristocrat's Syndicated Facility Agreement (also referred to as Bank EBITDA).
The information presented in this Review of Operations has not been audited in accordance with the Australian Auditing Standards.
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Aristocrat Leisure Ltd. published this content on 24 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2021 23:12:02 UTC.