The Aristocrat Leisure Limited (ASX: ALL) share price is charging higher on Friday.
In morning trade, the ASX 200 gaming technology company's shares are up 1.5% to $36.48.
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Why is the Aristocrat share price rising?
Investors have been bidding the Aristocrat share price higher today in response to the release of an update relating to the company's on-market share buyback.
According to the release, the ASX 200 company has decided to extend its current on-market share buyback program, as part of its ongoing capital management strategy.
With $478 million of shares bought back since June 2022, the Aristocrat Board has now approved an increase in the scale of the on-market share buyback program to allow up to a further $500 million in shares to be bought back over an additional 12-month period.
Though, as per the current buyback, it will continue to be conducted on an opportunistic basis and Aristocrat reserves the right to vary, suspend, or terminate the on-market share buyback program at any time.
Aristocrat CEO Trevor Croker said:
With the A$500 million on-market share buy-back program previously announced in May 2022 nearing completion, and our consistently strong cash flow generation, we are able to continue to pursue a mix of returns to shareholders via dividends and share buy-backs while also investing in strategic acquisitions and organic growth initiatives.
Trading update
In other news, Aristocrat has provided the market with a trading update at its annual general meeting.
The good news is that its performance in the current financial year has been "encouraging" and in line with its plans to date.
Gaming has started the year positively, particularly in North America where its major customers' capital commitments remain supportive. Pixel United's performance has been resilient and its fledgling real money gaming business, Anaxi, recently signed a content agreement with BetMGM.
The company also revealed that Anaxi is launching a first-of-its-kind mobile on-premise solution for US tribal gaming operators. This product allows patrons to connect with and play Aristocrat's Class-II gaming content via their mobile devices while on trust land.
All in all, Aristocrat "expects to deliver NPATA growth over the full year to 30 September 2023, assuming no material change in economic and industry conditions."
