Shares in gaming machine maker Aristocrat Leisure rose and then eased yesterday after investors scanned the interim result and gave it the thumbs up, especially for the return to interim dividends.
There was an obvious improvement in the result, even though revenue was down 1.1% thanks to the impact of Covid in major markets like the US.
On a constant currency basis Aristocrat said revenue rose 11% in the half thanks to continuing growth in its mobile video games business, and the recovery in poker machine activity as venues in Australia and the US reopened.
The shares hit a day’s top of $41.20 and then eased to be in the red in the early afternoon before a modest bounce back into the green to be up 0.1% at the close at $40.70.
Normalised profit after tax and before amortisation of acquired intangibles rose 12% to $411.6 million.
On a statutory basis Aristocrat’s net profit was $346 million, but that was down a misleading 73% after it recognised a $1.1 billion deferred tax asset (a benefit) in the 2019-20 accounts.
The company will pay a 15c half-year dividend, after not paying anything in the first six months of 2019-20.
The company paid a 10 cents a share final last November, so the payout this year has already topped that for Covid-hit 2020.
Aristocrat paid a peak of 56 cents a share for 2018-19. An interim of 22 cents a share was paid for that year.
“The outstanding momentum we’ve delivered this half reflects our unwavering focus on the things we can control, which lies at the heart of our proven growth strategy,” Aristocrat CEO Trevor Croker said in a statement with the results.
“Despite the uncertainties driven by COVID-19, we have maintained investment in the best people, talent, technology and product portfolios, and taken conscious decisions to accelerate implementation of our strategy.
“The results 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.
“We expect uncertain and volatile conditions to continue near term, and we are closely monitoring key factors including consumer sentiment and Gaming venue patronage,” He said.
