Global gaming industry supplier Aristocrat Leisure Limited has announced an extension to its on-market share buy-back program as part of its ongoing capital management strategy.
The extension comes with Aristocrat having already bought back AU$478 million (US$325 million) of shares since June 2022.
In a Friday morning filing, the company said its Board of Directors has approved the buy-back of up to AU$500 million (US$340 million) in additional shares between now and May 2024. It also described the buy-back scheme as being opportunistic in nature with the company maintaining the right to vary, suspend or terminate the scheme at any time.
“With the AU$500 million on-market share buy-back program previously announced in May 2022 nearing completion, and our consistently strong cash flow generation, we are able to continue to pursue a mix of returns to shareholders via dividends and share buy-backs while also investing in strategic acquisitions and organic growth initiatives,” said Aristocrat CEO Trevor Croker.
The expanded buy-back scheme was announced on the same day as Aristocrat hosted its Annual General Meeting, with Croker reaffirming earlier guidance that the company expects to deliver growth in net profit for the year ending 30 September 2023.
FY23 will see, “Continued strong revenue and profit growth from Aristocrat Gaming, underpinned by market-leading positions and recurring revenue drivers in Gaming Operations; lower growth in bookings and profit from Pixel United, compared to recent years; and further investment in [online gaming brand] Anaxi, to support our online RMG ambitions,” Croker said.
He added, “Group performance in the current financial year has been encouraging, and in line with our plans to date. Gaming has started the year positively, particularly in North America, where our major customers’ capital commitments remain supportive.
“From a macroeconomic perspective, we are closely monitoring possible impacts on consumer sentiment from elevated inflation and higher interest rates, and the evolution of supply chains. We are well positioned to continue working closely with our customers and suppliers to manage these uncertainties.”
Ratings agency Fitch recently issued a note outlining its expectation that Aristocrat will actively pursue strategic mergers and acquisitions in the near future, buoyed by its strong cash position.
Aristocrat shares opened at AU$35.89 on Friday, having risen by 17.2% since the start of the year.
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