ALL –1.32%: delivered a broadly in-line FY26 result, with net profit meeting expectations. However, shares came under pressure following the announcement that CEO Trevor Croker will retire in April 2027, introducing a leadership transition at a time when the company is pursuing several significant growth opportunities.
Key highlights:
- Revenue declined 3.2% to A$6.09bn in reported currency, but grew 3.8% in constant currency.
- Net profit rose 1.8% to $1.58bn, broadly in line with consensus.
- Normalised EBITDA increased 0.4% to $2.64bn, slightly ahead of expectations, with margins improving to 43.3% from 41.7%.
- Gaming profit increased 2.2% to $2.21bn, while Product Madness profit fell 6.5% and Interactive profit declined 13%.
- Final dividend increased to 51¢ per share from 49¢.
- CEO Trevor Croker will retire in April 2027, with Dafne Guisard named as CEO-elect.
MM’s view: The underlying result was reasonably solid, with earnings (EBITDA) ahead of expectations and margins improving despite softer revenue. Gaming remains the key earnings driver, supported by continued growth in North American operations and market share gains. However, the declines across Product Madness and Interactive highlight that performance remains mixed across the group. Croker’s retirement is also a notable change, given his role in the company’s execution and growth strategy. Management has pointed to earnings growth through FY27, we remain confident ALL can convert its strong market position and growth opportunities into an acceleration in earnings.
MM remains bullish towards ALL
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