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Australia – Aristocrat ends year with a Big Bang

By - 25 November 2015

Aristocrat Leisure ended its full year on September 30, with profit of $236.1m representing a 78.9 per cent increase in reported terms, and a 47.1 per cent increase in constant currency.

Group performance for the year was well ahead of the prior corresponding period last year, when $132m was delivered.

Performance was driven by the successful acquisition and integration of the VGT Class II gaming operations business, together with sustained improvement in operational performance. In particular, positive momentum in North American gaming operations across both Class III and Class II segments, outstanding growth in the Australian outright sales market and strong performance in Digital contributed to the result.

Chief Executive Officer and Managing Director, Jamie Odell, said: “Over the course of the year, the business continued to focus on the things within our control, namely broadening and deepening our core portfolio, improving front-end effectiveness, investing in outstanding talent and entrenching a high performance culture. Our strengthening operational performance delivered market-leading share growth and stronger returns across key segments during the period.

“During the reporting period, Aristocrat exited distracting business and increased our focus on core Class II, Class III and Digital operations. We also made significant progress in reducing our reliance on one-off sales and driving recurring revenues,” he added. “The percentage of revenue Aristocrat derives from recurring sources has already grown from under 24 per cent at 30 September 2014 to over 45 per cent at the 2015 full year.

“In addition, recent strategic investments – most particularly the successful acquisition and integration of VGT – together with increased, targeted D&D spend – have delivered ahead of our expectations.

“Finally, the growth in the Group’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, consistent with our strategy and shareholders’ interests,” Mr Odell concluded.

The group grew share and profitability in core outright sale segments in North America, Australia and Asia Pacific, despite mixed market conditions. 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.

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.

Looking at the outlook for the year ending 30 September 2016, Aristocrat expects further growth in Americas Class III premium gaming operations it expects further growth in the Group’s installed base and some improvement in fee per day. In Americas Class III outright sales it anticipates moderate share gains in a flat to declining market whilst in Class II, the Group is targeting growth in its installed base and expects to sustain VGT’s yield over the year.

Aristocrat ended its fiscal year with a landmark deal with Caesars Entertainment that places 200 premium lease games across the Caesars’ gaming empire. The deal complements Aristocrat’s existing premium lease install base and is the single largest Class III recurring revenue deal in Aristocrat’s more than 60 year history.

The installation marks the global debut of Aristocrat’s award-winning Arc Double and Behemoth cabinets, as well as the debut of the wildly popular Britney Spears Slot Game, which hit Caesars’ casino floors in August. Additional popular titles making a splash with players include The Big Bang Theory Slot Game and Batman. Ted themed slot games will roll out in December.

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