Aristocrat Leisure Limited has unveiled an on-market share buy-back program valued at up to AU$750 million ($477 million), marking the latest step in its ongoing capital management strategy.
This announcement follows the completion of a previous AU$1.85 billion ($1.18 billion) buy-back program in January 2025.
The new buy-back program is set to begin on or after March 7th, 2025, and will be funded using Aristocrat’s existing cash reserves.
The move comes after Aristocrat’s recent receipt of $600 million from the sale of Plarium Global Limited earlier this month.
Strong business performance and robust cash flow have kept Aristocrat’s leverage below its target net debt-to-EBITDA ratio, allowing the company to continue investing in growth initiatives—such as strategic mergers and acquisitions (M&A)—while also returning excess cash to shareholders through dividends and the new buy-back program.
The filing also notes that the buy-back will be conducted opportunistically to capitalize on favorable market conditions.
In addition to the share buy-back, Aristocrat intends to allocate part of the proceeds from the Plarium sale to repay its $250 million Term Loan B debt facility. The repayment is expected to be completed by March 2025, well ahead of the facility’s May 2029 maturity.
Aristocrat’s CEO and Managing Director, Trevor Croker, expressed confidence in the company’s financial position, 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. We will actively assess growth opportunities, including strategic acquisitions and investment in organic initiatives, on an ongoing basis.”
