Aristocrat Leisure Limited (ASX: ALL)

After the close of the financial year 2017, the gaming technology company, Aristocrat acquired Big Fish Games. Its organic growth and acquisitions both played a critical role in delivering an increase of almost 300 per cent in Total Shareholder Returns over three years till financial year 2017. Aristocrat maintained its market-leading share position in Asia Pacific and its performance was driven by large scale openings in the region. The Group expects to achieve a continuous growth rate in North America Class III gaming operations. Aristocrat sustained momentum, strong cash flows and a swift progress and continuously worked on reducing the gearing levels in 2017, which allowed the Company to deliver another lift in the dividends. The focus on recurring revenues via expansion of gaming operations installed base is high. The efforts have resulted in 15% improvement in revenue in FY17 along with EBITDA rise of 24%.  While the group expects contributions from Plarium and Big Fish in FY18, one off transaction and integration costs will be indicated as significant items.

At company level and in terms of insider buying that is considered a good sign, Aristocrat revealed to ASX that one of its Directors, Mrs Sylvia Summers Couder has a direct interest in the Company and recently acquired 6,050 shares (fully paid ordinary) from the market for a total consideration of US$109,339.15. Commonwealth Bank of Australia also became the initial substantial holder with a total of 5% voting power as at April 11, 2018, after ceasing to be a substantial holder of the Company as at 4 April 2018. Mrs Antonia Korsanos, Company Secretary of the Group resigned from respective position and Mr Richard Bell who was appointed in May 2017 will continue to act. Share prices were up by 4 per cent in the past three months but slipped by 5.9 per cent in the past one month.Looking at the trading levels, the stock still looks “Expensive” at the current price of $ 24.150.
 

Segment-wise Performance (Source: Company Reports)

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