Why Aristocrat Leisure Share Price is up by 3.42% in a Day

Aristocrat Leisure Ltd [ASX:ALL], usually considered to be a buy-and-hold stock, is sitting at a 3.42% share value increase today.

This increase could be due to the weakening of the Australian dollar. Aristocrat Leisure generates a huge portion of its revenue in the United States, and this boost could be due to favourable currency fluctuations.

What is Aristocrat Leisure?

Aristocrat Leisure Limited is an Australian gaming machine manufacturer, creating electronic gaming machines and casino management systems. The company’s activities include the design, development and distribution of gaming content, platforms and systems.

Their gaming machines are considered to be the best on the market and are capable of growing strongly over the new few years. The recurring revenue that they generate is staggering, with 8.3 million users playing their mobile and social games daily.

However, the company is not without its controversy — as you may exp
ect, being in the gambling industry.

Earlier this month, 94-year-old founder and billionaire Len Ainsworth received an Order of Australia in the Queen’s Birthday honours for his service to Australian business, manufacturing and philanthropic contributions. He was slammed by anti-gambling campaigners, saying Ainsworth shouldn’t be rewarded for fuelling a toxic, detrimental culture.

What does this mean for me, as an investor?

For FY17 their underlying net profit was up 36.5% to AU$543 million. Their dividend yield is up 1.3%.

They have plans for further long-term development. With more and more games being released, these numbers could rise significantly in the coming years.

Regards,

Ryan Clarkson-Ledward,
For Money Morning


Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor of Australian Small-Cap Investigator, a stock tipping newsletter that hunts down promising small-cap stocks by dissecting the latest events affecting the world.

To find out more about the publications Ryan works on and how you can subscribe, please click on the corresponding link here:


Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia