Stable growth in unstable times

Research evidence excerpt

Stable growth in unstable times

yping, testing). As an

changes within the One Big Beautiful given at the February AGM, and example, porting games across to

Bill. Aristocrat also have a higher was a 1% miss to both MQe different markets has decreased

weighting to regional/tribal markets, (US$53.78) and consensus (US from 16 weeks to 1 week. However,

which tend to be more stable than $53.60). However, Aristocrat expects the competitive moat against

Las Vegas (Las Vegas = 5% of North sequential improvement in 2H26 AI remains regulatory compliance,

America revenue). (MQe = +2%) given the strength of new customer relationships, IP brands,

• Aristocrat expect A$100m in cost content. talent, and innovation.

savings in FY27, which will be spread • The North American Gaming margin • Aristocrat is tracking below

across the business (i.e., segment of 56.9% was down 1.2%pts YoY and expectations on progress towards

profit, D&D, corporate costs). A 1.1%pts/1.2%pts below MQe and the US$1bn FY29 Interactive

portion of the A$100m will be Visible Alpha consensus, impacted revenue target (MQe = US$931m),

reinvested for organic growth, and by a larger-than-expected skew to but remain committed, and will

there will be minimal impact from lower margin outright sales. The benefit from entry into new iCasino

the program in 2H26. We assume a margin is expected to step up jurisdictions like Rhode Island, Maine

A$75m pre-tax benefit to FY27 for sequentially due to Gaming Ops and Alberta, and iLottery entry

the time being, with further evidence strength in 2H26, but Aristocrat in Massachusetts and Michigan.

of execution providing upside to expect the range to remain in the Management also reiterated the

forecasts. 56-58% range seen historically – we launch timing of Lightning Link in July