Aristocrat aims for $1bn revenue from interactive segment in FY 2029
Sydney-headquartered firm unveiled its ambitions for Aristocrat Interactive during its Investor Day meeting and how it hopes to reach revenue target
Aristocrat Leisure has revealed a target of at least $1bn (£791m) in full-year 2029 revenue for its interactive arm.
The Australian operator revealed its revenue expectations, supported by accelerated activities through to FY 2026 such as distributing more than 90 new premium games every year, during its Investor Day on Wednesday, 26 June.
New business unit Aristocrat Interactive was only officially launched earlier this week, made up of all of the company’s former business operations under Anaxi as well as the recently acquired NeoGames.
The interactive segment will focus on three different operational pillars in ilottery, content and gaming systems.
If Aristocrat Interactive was to amass $1bn in revenue within the next five years, it would represent a five-year compound annual growth rate of 20%.
Moti Malul, CEO of Aristocrat Interactive, shed light on the reasons behind the company’s projection while addressing investors.
He insisted that the $1bn target was inspired by three areas, the first being his belief that Aristocrat boasts “one of the most diverse portfolio of products” which allows the group to establish itself as a key player across three major verticals in online sports betting, igaming and ilottery.
The second reason the CEO gave was how quickly Aristocrat can integrate with the firm’s “network of pipelines” underlaid with Pariplay, with Malul citing the upcoming launch in Alberta as an example as well as other launches in the works.
The third reason for the optimism stems from how Aristocrat will be able to take its interactive division into markets where it hosts plenty of customers, such as North America.
Malul explained: “So, the combination of these three things, the diversity across products, customers, geographies, the fact we can take Aristocrat to our market, the fact that they can take us to their markets is one that makes us believe we can get to this $1bn number.”
“We are excited to reach this next milestone in our journey to be the global leader in digital gaming experiences,” the CEO continued.
“With the launch of Aristocrat Interactive, we believe we are uniquely positioned to spearhead a new era of connected experiences.
“With our integration of world-class content, cutting-edge technology and service offerings, we are focused on offering a new standard of excellence for our valued customers.”
Reaching that headline figure of $1bn is by no means guaranteed, with analysts expressing caution given the recent rate of legalisation in the US, particularly in the igaming and ilottery verticals, which have been significantly slower to legalise in comparison with online sports betting.
A note issued on Wednesday and written by JP Morgan analysts Donald Carducci and Michael James outlined that if the $1bn revenue figure is met, the implied $270m EBITA would be “about 50% higher than the current $175m forecast.”
Aristocrat Leisure shares currently sit at A$49.76 per share, increasing 0.67% from Thursday’s close.