Aristocrat Leisure remains optimistic of achieving a $1bn revenue target for its Interactive segment within the next three years.
Even in the face of challenging global regulatory environments, the firm is eyeing FY2029 for the significant ambition.
The $1bn revenue target includes Aristocrat Interactive‘s share of revenues generated from the NeoPollard Interactive Joint Venture, as the supplier is focused on further scaling its content and investing in iLottery to support this ambition.
During its recent financial earnings call for the first half of its 2026 reporting period, covering the six months ending 31 March 2026, investors challenged the target and noted that Aristocrat appears to currently be slightly behind in achieving that goal.
Momentum building to $1bn target
In H1 26, Interactive reported:
- Revenue: $230.3m, up 6.5% year-on-year (YoY) (H1 25: $216.3m).
- Profit: $64.3m, down 10.6% YoY (H1 25: $71.9m).
- Margin: 27.9% (H1 25: 33.2%).
Trevor Croker, Chief Executive Officer and Managing Director of Aristocrat, responded by stating that the goal can still be achieved, even with iGaming US state launches stagnating and UK regulatory changes, in addition to the time it has taken to execute its own portfolio from a technology and games approval perspective.
Croker commented: “What we do feel confident about is that we do see scaling of land-based franchises in digital and we’ve seen that already with some of the land-based games. We’re obviously excited about Lightning Link coming through.
“We’re also focusing on as these markets open, being ready to open with them. We are in all markets except for Rhode Island at this stage, but we expect to see Rhode Island and Maine and other Canadian provinces open.
“At the same time, we’re now at 94% access to the market. We feel that we’ve built the leadership team under Dylan and other executives we brought in. They’re bringing in the capacity to drive towards that $1bn. Your comment is fair. We’re behind where we wanted to be and we own that.
Croker continued: “We also believe that, between the content work that’s going on, also the iLottery business, obviously Massachusetts and Michigan coming online in July, Colorado, which is an open RFP at the moment and continuing to scale those businesses, we see those as great ways to drive towards the $1bn target.
“The platforms business, it’s a good, stable business, but adding incremental capabilities, such as gaming analytics, we see as a way to enhance that business and to create more momentum towards that $1bn.
“In summary, we’ve got a sharpened focus on this. We’ve recruited the right talent execution, we’ve organised our commercial teams and we’ve got a line of sight on the things that we know we can control to get towards that target.”
Aristocrat CEO confident in Europe
Investors also challenged how the target could be achieved despite European regulatory changes, such as tax increases, being in play, and whether its market share would reach high single digits.
Croker remained confident in Interactive operations succeeding in Europe despite headwinds being present, starting with the launch of Lightning Link later this year.
The CEO stated: “When you have the opportunities that we have in front of us in iGaming, it’s important to stay focused. We’ve really focused on the North American market, the Canadian market and the UK market.
“Your hypothesis about Europe is right. There are some moving pieces in Europe regarding the way the tax regimes in various countries are changing. Some of the access is changing as well.
“We do believe that our land-based content will resonate in iGaming and we’ve seen that initially. We expect to see that be very confidently reinforced when we launch Lightning Link later this year. We do see Europe as part of that.
“We are focused on getting our rightful share in North America and Canada, which are close to our core markets and continuing to build in Europe, both from our land-based gaming business point of view, where we hold a sort of 22 share of the install base, getting a stronger position in iGaming in the markets where we can compete effectively. It is part of our geographical opportunity in the $1bn.”
Q1 financials summary
Overall (in AUD $)
- Revenue: $3.028bn (H1 25: $3.035bn).
- EBITA: $1.12bn, up 6.2% YoY (H1 25: $1.05bn).
- Margin: 36.9% (H1 25: 34.7%).
- Profit: $794m, up 8.4% YoY (H1 25: $732.6m).
Aristocrat Gaming
- Revenue: $1.96bn, up 4.9% YoY (H1 25: $1.87bn).
- Profit: $1.06bn, up 3% YoY (H1 25: $1.03bn).
- Margin: 54.2% (H1 25: 55.2%).
Product Madness (in US $)
- Social casino revenue: $541.7m, up 4.7% YoY (H1 25: $517.4m).
- Social casual revenue: $4.5m, down 91.4% YoY (H1 25: $52.2m). Social casual was sold early in the half.
- Revenue: $546.2m, down 4.1% YoY (H1 25: $569.6m).
- Profit: $253m, up 3.6% YoY (H1 25: $244.3m).
- Margin: 46.3% (H1 25: 42.9%).
Croker concluded: “Looking ahead, we are well-positioned for the full-year and to capture the strategic opportunities in front of us. Our operating model is driving greater efficiency and scale, and we are increasingly leveraging AI to enhance our strategic advantages and transform our processes.
“We remain committed to our capital management strategy and our on-market share buy-back program.”
