Australian slot-machine manufacturer Aristocrat Leisure Ltd. has swung to full-year profit thanks to its newly-acquired Video Gaming Technologies (VGT) business.
Aristocrat has recorded a revenue of AUD1.58 billion for the fiscal year ending September 30th, an 89% increase from AUD839 million a year ago. The company has also posted a net profit of 186.43 million for the 12 months, up from a $16.4 million loss.
The company attributed its accomplishment to the successful acquisition and integration of the VGT Class II gaming operations business, sustained improvement of its North American gaming operations across both Class III and Class II segments, outstanding growth in the Australian outright sales market and strong performance in its digital section.
“In Australia, Aristocrat’s total unit sales increased 43.6% compared to the prior period – well over three times the rate of market growth, and the business regained share lost in earlier years of the Group’s turnaround,” said the company in a filing with the Australian Securities Exchange. “Digital revenues and segment profit increased almost three-fold compared to the PCP, in constant currency. This result was again delivered through the sustained growth of the flagship Heart of Vegas application, which launched on iPhone and Android during the reporting period.”
“In North America, Aristocrat’s total gaming operations installed base and average fee per day across both Class II and Class III segments recorded significant growth over the reporting period, added the company. “The Group also grew share and profitability in core outright sale segments in North America, Australia and Asia Pacific, despite mixed market conditions.”
CEO and managing director Jamie Odell said that recent strategic investments – most particularly the successful acquisition and integration of VGT — together with increased, targeted D&D spend—have delivered results ahead of expectations. Growth in the company’s recurring revenue base and strong cash flows provide the business with the capacity to consider additional organic and inorganic investments over the coming period.
Odell anticipates further growth in daily active user numbers and in overall revenue from digital and average revenue per daily active users The company expects margins to moderate over 2016 as Aristocrat hits scale and grows into new channels.
The directors have authorized a final dividend for the six months ended September 30 of 9 cents per share resulting in total dividends for the full year of 17.0 cents per share.