CITI - Buy PT $44

Statutory Results

Revenue from ordinary activities up 14.4% to 4,736.6

Profit from ordinary activities before tax up 160.3% to 935.9 down 40.5% to 820.0

Normalised results

Operating revenue up 14.4% to 4,736.6

Profit before tax up 113.7% to 1,016.8

Profit after tax and before amortisation of acquired intangibles up 81.4% to 864.7

KEY HIGHLIGHTS

Established growth strategy and sustained investment in outstanding product, people and capability delivered greater diversification, resilience and profitable growth in FY21

Strong operating cash flow and a robust balance sheet provides flexibility and optionality to accelerate growth plans through organic investments and strategic M&A in FY22

81% growth in normalised NPATA to $865 million in FY21 (up 102% in constant currency) delivers performance close to 2019 levels with a stronger, more diverse and resilient business

Strong recovery and performance in Gaming driven by market-leading products and portfolio, and above-category growth in Pixel United1 , Aristocrat’s mobile games publishing business (formerly Digital) driven by strong portfolio performance and player engagement.

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CREDIT SUISSE - Outperform PT $50.30

ORD MINNETT - Accumulate PT $51

MACQUARIE - Upgrade to Outperform from Neutral PT $52.75

MORGANS - Add PT $52.90

Recommended cash offer for Playtech plc, launch of a A$1.3 billion Entitlement Offer and Trading Update

Sydney, 18 October 2021

• Aristocrat makes recommended cash offer to acquire Playtech, a leading global online gambling software and content supplier for A$5.0 billion (enterprise value)

• Acquisition will accelerate Aristocrat’s growth strategy over the medium term, and deliver sustainable shareholder value

• EPSA accretive in first full year of ownership

• Playtech Board is unanimously recommending shareholders vote in favour

• To be funded with existing cash, new debt and a A$1.3 billion entitlement offer

• Aristocrat expects 2021 full fiscal year NPATA of A$864 millio

The notes below are from a research note from Sandstone which shows some good prospects for ALL as part of the reopening/economic recovery thematic. I tend to agree and hold ALL in my RL portfolio

''The US casino industry has recovered strongly over the last 6 months and the momentum continues to feed through to demand for gaming machines. ALL’s strong industry position suggests the recent share price performance is well justified but we think there is more to come. ALL’s digital businesses continue to expand successfully and the company is consistently hitting the mark with new products. ALL is spending heavily on its D&D pipeline to support its Premium leased games and other slot machines which is feeding through to average fee per day growth and outright sales of units. ALL’s balance sheet is in good shape with net debt to EBITDA below 0.5x across FY22- 23f and a cash balance of $1.7 billion as at March 2021 to support further acquisitions. The earnings risks still stem from the possibility of economic setbacks due to COVID19 recurrences, but this risk is receding as North America is largely back to normal conditions while Australia makes progress. We have maintained our Buy recommendation on ALL.''