Aristocrat Leisure completes Plarium sale, restructures social gaming business

Australian gaming giant Aristocrat Leisure Ltd has officially completed the sale of its mobile gaming subsidiary, Plarium Global, to Modern Times Group (MTG) for a substantial $620 million. This sale marks a significant shift for Aristocrat as the company narrows its focus on regulated gaming and real-money gaming operations. In addition to the upfront payment, Aristocrat stands to gain an additional $170 million if Plarium meets sales targets by 2028.

The Plarium Deal: What’s at Stake?

Plarium, best known for its free-to-play mobile games such as Raid: Shadow Legends and Vikings: War of Clans, was acquired by Aristocrat in 2017 for $500 million. Over the past year, Plarium’s business generated $613 million in revenue, with a solid EBITDA of $137 million. This sale is a reflection of Aristocrat’s ongoing restructuring efforts, as it realigns its portfolio to focus on core areas of growth.

Maria Redin, CEO of MTG, expressed excitement about the acquisition, highlighting Plarium’s strong game portfolio and advanced user acquisition tools. “Plarium brings an exciting and highly successful portfolio of live games, including the evergreen Raid: Shadow Legends, to our lineup,” said Redin. MTG, based in Sweden, owns other well-known gaming brands like Ninja Kiwi and InnoGames.

Aristocrat’s Refined Focus

Following a strategic review, Aristocrat announced that it would be restructuring its social gaming business, previously part of Pixel United. The new division, Product Madness, will take charge of Aristocrat’s remaining social gaming efforts. As part of this change, Big Fish Games, another Aristocrat subsidiary, will shift focus. The company will reduce investment in new game development and prioritize the operation of existing titles.

This restructuring plan is part of Aristocrat’s broader effort to “accelerate its refreshed growth strategy,” according to CEO Trevor Croker. “We are deepening management focus and targeting investment behind our core strengths in regulated gaming and gaming-themed content,” Croker said.

Financials: A Strong Year for Aristocrat

For the financial year 2024, Aristocrat reported AU$6.6 billion ($4.31 billion) in revenue, a 4.9% increase compared to the previous year. Net profit rose by 17.2%, reaching $1.56 billion, and EBITDA increased by 18.5%, totaling $2.45 billion. The social gaming business, previously under Pixel United, generated $1.75 billion in revenue, with an Adjusted EBITDA of $656 million.

A New Leadership Path for Product Madness

In line with the restructuring, Superna Kalle, Aristocrat’s Chief Strategy Officer, will assume leadership of the newly formed Product Madness division. Kalle will maintain her existing responsibilities while overseeing the changes within the division.

Capital Management Plans Ahead

Aristocrat intends to use the proceeds from the sale of Plarium to establish a capital management framework. This strategy is set to contribute to a “gain on sale” that will be reflected in Aristocrat’s financial results for FY2025.

What’s Next for Aristocrat?

With the sale of Plarium and the restructuring of its social gaming division, Aristocrat is positioning itself for future growth in more regulated and profitable gaming sectors. As the company narrows its focus, industry observers will be keen to see how the shift impacts Aristocrat’s long-term strategy and market position.

What do you think about Aristocrat’s shift toward regulated gaming? Share your thoughts below, and stay tuned for more updates on this evolving story.