Aristocrat Leisure Limited (ASX: ALL) shares are edging higher on Wednesday.
In morning trade, the ASX 100 gaming technology company's shares are up 0.5% to $40.09.
This follows the release of Aristocrat's full year results.
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ASX 100 tech share higher on FY 2023 results
- Operating revenue up 13% to $6,295.7 million
- EBITDA up 13.8% to $2,105.4 million
- Normalised net profit after tax before amortisation (NPATA) up 20.7% to $1,326.6 million
- Reported net profit after tax up 53.3% to $1,454.1 million
- Dividends per share up 23.1% to 64 cents
What happened during FY 2023?
For the 12 months ended 30 September, Aristocrat reported a 13% increase in operating revenue to $6,295.7 million. Management advised that this reflects growth in Aristocrat Gaming, which was driven by a high performing portfolio and superior execution in North America.
This was supported by a resilient performance from the Pixel United business in a mixed environment. Management advised that its performance was broadly in line with the global mobile games market and continued to grow share in Social Casino. This was achieved as overall mobile bookings moderated and the business continued to dynamically manage user acquisition (UA) and operating costs.
Finally, Aristocrat's online real money gaming (RMG) business, Anaxi, delivered on its initial market entry commitments and continued to establish solid foundations for growth.
On the bottom line, the company posted a 20.7% increase in NPATA up 20.7% to $1,326.6 million. This reflects a superior product portfolio, ongoing investment and consistent execution, notwithstanding mixed conditions across some key segments.
Management commentary
The ASX 100 share's CEO and managing director, Trevor Croker, said:
I'm proud of the high-quality result that we are announcing today. The growth that Aristocrat delivered over the period demonstrates the ongoing resilience, competitiveness and diversification of our portfolio, and sound fundamentals in the markets in which we operate. At the same time, we have been able to accelerate investment behind our successful growth strategy.
Outlook
Management's guidance for FY 2024 was positive but limited. It expects the ASX 100 share to "deliver NPATA growth over the full year to 30 September 2024 (constant currency basis)."
This reflects its expectation for continued strong market share, revenue and profit growth from Aristocrat Gaming, with a possible moderation in consumer spending in key markets.
In addition, its guidance assumes disciplined execution in Pixel United with a focus on market share and investment efficiency to maintain momentum, as well as focused investment in Anaxi as it scales its content portfolio to support broader market access in North America and Europe.
The proposed acquisition of NeoGames is expected to be earnings per share accretive in the first full year of ownership but broadly neutral in FY 2024 after funding considerations.
