The Aristocrat Leisure Limited (ASX: ALL) share price will be one to watch on Thursday.
This follows the release of the gaming technology company's full-year results this morning.
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Aristocrat share price on watch after company delivers strong profit growth
- Normalised operating revenue up 14.4% (24.8% in constant currency) to $4,736.6 million
- Normalised EBITDA up 43% to $1,542.9 million
- Normalised net profit after tax before amortisation (NPATA) up 81.4% (102% in constant currency) to $864.7 million
- Reported NPATA down 38.6% to $919.1 million
- Fully franked final dividend of 26 cents per share, bringing full year dividend to 41 cents (up 310%)
- Outlook: Continued growth in FY 2022.
What happened in FY 2021?
For the 12 months ended 30 September, Aristocrat delivered a 14.4% increase in revenue to $4.7 billion.
Growth in Aristocrat's North American Gaming Operations, North American and ANZ Outright Sales, and Pixel United's mobile games segment drove the revenue increase.
The company's normalised NPATA grew at an even stronger rate, jumping 81% to $864.7 million. Management said this reflects strong product and portfolio performance and profitable growth in the Aristocrat Gaming and Pixel United businesses.
A recent note out of Goldman Sachs reveals that its analysts were expecting revenue of $4,593.1 million and EBITDA of $1,521.4 million. The company has outperformed both metrics, which could bode well for the Aristocrat share price today.
How did its businesses perform?
Pixel United is now the company's largest segment in terms of revenue. It contributed 52% of revenue after reporting a 14.7% increase in revenue to US$1,845.1 million. There was a 21.7% jump in segment profit to US$602.1 million.
Aristocrat Gaming delivered a 27.5% increase in revenue to A$2,269.6 million and an 82.7% lift in segment profit to A$1,115.2 million.
Aristocrat's Chief Executive Officer and Managing Director, Trevor Croker, commented:
The results and momentum we've delivered this year demonstrates the successful execution of our growth strategy. We continued to take share and deliver above-category organic growth over the year through sustained investment in outstanding product, people and capability, and further strengthening our business fundamentals.
Our progress is reflected in the share growth and margin expansion achieved across key segments during the year, with industry-leading games and products and further diversification across our Aristocrat Gaming and Pixel United portfolios.
The company's high level of investment in game design and development is supporting this diversification. Aristocrat invested $527.6 million in design and development, representing 11.1% of group revenue.
Outlook for Aristocrat
Aristocrat management spoke positively about the year ahead but provided no guidance for the 2022 financial year.
Croker commented: "Aristocrat enters fiscal 2022 with excellent operational momentum, business resilience, and an appetite to continue to invest organically and through M&A to accelerate our growth strategy."
This is expected to drive continued growth, assuming no material change in economic and industry conditions.
The Aristocrat share price is up 51% in 2021.
