Moody’s Investors Service said Thursday that it doesn’t expect the proposed acquisition of real money gaming platform NeoGames to impact Aristocrat Leisure Limited’s credit metrics given the slot machine giant’s strong cash position.
The assessment, by Moody’s analyst Maadhavi Barber, comes after Aristocrat announced details of the proposed US$1.2 billion acquisition earlier this week. It also released its 1H23 financial results on Thursday morning, which confirmed the company has cash and cash equivalents of AU$3.5 billion. Aristocrat had stated plans to acquire NeoGames using cash on hand.
“Moody’s expects that the proposed acquisition of NeoGames will have minimal impact on Aristocrat’s credit metrics, given the transaction will be funded with cash,” Barber said. “The transaction is subject to NeoGames shareholders’ approval, as well as gaming regulatory, antitrust and foreign investment approvals.”
Barber was also positive on Aristocrat’s 1H23 results – which saw the company print a net profit of AU$692.7 million (US$461 million) – and said he expects all business segments to exhibit positive growth through the second half of the financial year.
“Aristocrat’s 1H23 results are credit positive,” he said. “Solid performance from the North American gaming operations and outright sales segments offset a reduced contribution from Pixel United (digital), higher input costs and supply chain pressures.
“Moody’s expects Aristocrat to continue performing well in 2H23 in all operating segments, reflecting its strong market position and recurring revenues, which will offset continued spending to grow the Anaxi (online Real Money Gaming) segment.”
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