Aristocrat Leisure announces $477 million million share buy-back
Aristocrat Leisure Limited has launched a new on-market share buy-back program worth up to AU$750 million ($477 million). The move follows the completion of its previous AU$1.85 billion ($1.18 billion) buy-back in January 2025, reinforcing its capital management strategy.
Buy-back initiative to begin in March
Aristocrat’s new buy-back program is scheduled to start on or after March 7, 2025. It will be funded entirely through the company’s existing cash reserves. This follows the receipt of $600 million from the recent sale of Plarium Global Limited earlier this month. The company stated that the buy-back will be executed opportunistically, allowing it to take advantage of favourable market conditions.
Strong financial position
Aristocrat’s strong business performance and consistent cash flow have kept its leverage below its target net debt-to-EBITDA ratio. This financial stability allows the company to balance investment in strategic growth—such as mergers and acquisitions (M&A)—with returning capital to shareholders through dividends and buy-backs.
Aristocrat’s CEO and Managing Director, Trevor Croker, highlighted the company’s financial strength, stating, “Aristocrat’s robust balance sheet and strong cash flow generation enable us to reinvest in the business and continue returning cash to shareholders via dividends and share buy-backs. Upon completion of the program announced today, Aristocrat will have returned AU$2.6 billion ($1.65 billion) to shareholders through share buy-backs.”
Plarium sale proceeds also used for debt repayment
In addition to the share buy-back, Aristocrat plans to use part of the Plarium sale proceeds to repay its $250 million Term Loan B debt facility. The repayment is expected to be completed by March 2025, significantly ahead of the facility’s May 2029 maturity.
This debt repaying is a part of Aristocrat’s larger financial strategy where it aims for a solid balance sheet while making room for opportunities for future investing. The organisation keeps evaluating avenues of growth through acquisitions and also organic efforts with a view of long-term wealth for shareholders.
Capital strategy balances investment
The latest buy-back program highlights Aristocrat’s commitment to disciplined capital allocation. By leveraging its strong cash flow, the company can pursue growth initiatives while also distributing excess capital to shareholders.
Aristocrat has had a consistent emphasis on returning value to shareholders. The fulfillment of the current buy-back program will take the total returned by way of share buy-backs to AU$2.6 billion ($1.65 billion). This policy reflects the confidence of the company in its financial well-being and future prospects.
