Aristocrat has announced a 5.6 percent increase in profit for the first financial half year (ending March 31st), totaling AU$732.6 million ($474.36 million), bolstered by strong North American sales.
According to the group’s most recent financials, the company booked an 8.7 percent increase in revenue, to AU$3.03 billion ($1.96 billion).
The group attributed the increases to ‘the Group’s breadth and high-quality portfolio of scaled, world-class gaming assets, ongoing effective execution of our growth strategy and leading organic investment in talent, technology and product’.
Strong results were seen across all segments, with revenue from its Gaming segment rising by 2.4 percent to nearly AU$1.87 billion ($1.21 billion), bringing profit from the segment up to AU$1.03 billion ($666.92 million) – a 3 percent annual rise.
This amounted to some 62 percent of the group’s overall revenue and 68 percent of profit, ‘reflecting the expansion of the installed base footprint by around 2,500 net additional units with approximately 6,400 net unit growth over the 12 months’.
Profit from the Gaming segment was driven by an AU$60 million ($38.85 million) increase in North America, despite Rest of World being down by AU$36 million ($23.21 million) – partially attributed to expectations of the launch of the new Baron cabinet in the second half of the year.
North America revenue totaled AU$963.8 million ($627 million), up by 1.4 percent yearly, while profit rose to AU$560 million ($362.6 million), up by 3.8 percent. The group currently holds 42 percent market share in North America.
Rest of World revenue amounted to AU$341.2 million ($220.9 million), down by 9.4 percent yearly, with profit from the segment slipping nearly 20 percent, to AU$143.7 million ($93 million).
In Asia, revenue grew by 2.5 percent, ‘driven by a favorable product mix and strong game performance, that more than offset the impact of lower volumes’.
Looking to its social casino business Product Madness, revenue was up by 1.5 percent yearly, to nearly $570 million, with profit rising by 9.4 percent to $244.3 million, as the group’s social casino franchises outperformed the market. Product Madness ranked #1 in the overall social casino slot market, with 21 percent market share.
Regarding the group’s online Real Money Gaming (RMG) business, Aristocrat Interactive, revenue was up by 200.8 percent yearly, to $216.3 million, while segment profit skyrocketed by nearly 260 percent, to $71.9 million.
The group’s segment offerings encompass iLottery, iGaming, Online Sports Betting and Customer Experience Solutions.
Speaking of the results, Trevor Croker, CEO and Managing Director of the company, noted that “This was a positive result, illustrating the quality of Aristocrat’s portfolio and ability to grow through different operating environments while also investing for the future.”.
“I am excited that we now have three focused and fully complimentary business lines, united by a common core of great gaming content and each offering exciting growth prospects.”
The executive furthered that the company continues “to actively pursue strategic M&A opportunities, in a disciplined and consistent manner.”
The executive is expecting “an acceleration in operating momentum in the second half of the year as we capitalize on product rollout and technology initiatives across our portfolio”.
The group anticipates continued growth in profit (NPATA) for the full year ending September 30th, with continued market share gains from its Gaming segment, ‘disciplined execution in Product Madness’ and ‘accelerating performance at Aristocrat Interactive’.
