Aristocrat Leisure says it will focus on expanding its existing operations, rather than chasing new “bolt-on” acquisitions such as U.S. group Video Gaming Technologies in 2015 and Product Madness back in 2012, local media reports.
Chief executive Jamie Odell was quoted by Fairfax Media as saying he was wary of turning the company into a ‘deal machine’. “We are aware we’ve done two great pieces of M&A with Product Madness and more recently VGT, but we really don’t want to become deal junkies and we can’t,” said Odell. “The majority of our shareholders really see us as a growth vehicle. We’ve got great cash flows at the moment which we’re very proud of and it gives us flexibility,” he added.
Odell said although they will continue to spend time looking at new deal opportunities, he is now going to focus on organic expansion of its existing facilities. “We actually have quite a few things organically which we are investing in,” said Odell. “As a management team we look at organic and inorganic investment and we’re quite excited about organic investment that is adjacent to us.”
Odell also said he will be keeping a close watch on the pending deal which could see Ainsworth Game Technology handed over to Novomatic, which would give Ainsworth a stronger platform to target Australia and North America.
Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.
Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.