ASX:ALL
Aristocrat Leisure Ltd
Investment Summary
The fund managers believe that Aristocrat Leisure Ltd is a solid investment, particularly in light of its performance in the consumer discretionary space. In their opinion, Aristocrat's recent market share gains in the North American gaming market position it favorably, with significant growth in its installed base of poker machines, which increased by 3.2k units. This growth accounts for nearly all of the industry’s expansion over the past six months. Additionally, management's optimism regarding continued growth in the second half of the year indicates strong customer orders, despite competition from Light and Wonder. The fund managers also highlight improvements in the mobile games division, where Pixel United's margins have significantly improved due to effective cost management and a more mature game portfolio. However, some caution is noted as macroeconomic uncertainties and consumer spending concerns have led to portfolio adjustments, reflecting a balanced approach to potential risks.
Commentary From The Managers
Ten Cap
31 Mar 2025
$64.15
- Ten Cap has trimmed its position in Aristocrat Leisure Ltd.
- This action is part of a strategy to manage portfolio exposure to macro economic uncertainty.
- Concerns about consumer spending have influenced this decision.
- Ten Cap maintains a cautious approach given the current market conditions.
Blackwattle Investment Partners
31 May 2024
$44.93
- Blackwattle Investment Partners continues to hold an overweight position in Aristocrat Leisure Ltd (ALL.AX) due to its strong performance in the Consumer Discretionary sector.
- Recent 1H March 2024 results indicate continued market share gains in the North American gaming market.
- ALL’s installed base of poker machines has grown by 3.2k units, totaling 67k units, representing nearly all industry growth in the past six months.
- Management expresses confidence in achieving similar growth in the second half of the year, indicating strong customer orders despite competition from Light and Wonder.
- The mobile games business Pixel United has seen significant margin improvements as costs were effectively managed.
- A more mature portfolio of games in Pixel United requires lower user acquisition spending, supporting profitability.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.