By Adrian Thomas
Aristocrat Leisure has recorded a 35.2 per cent net profit increase in the first-half of the 2015 financial year, attributing it to the growth of Australian and US operations and the integration of Video Gaming Technologies (VGT).
The Sydney-based poker machine company made a net profit of $77.6 million for the six months to March 31, up from $57.4 million a year ago.
The company has accredited the positive results to the growth and improvements made in its Australian and US operations with CEO and managing director Jamie Odell stating: "We have taken major steps forward in our product-led, share-taking strategy, asserted our focus on driving scale and profitability in critical recurring revenue segments and cleaned up remaining legacy distractions and non-core operations."
A contributing factor was the recent acquisition of Video Gaming Technologies in October 2014, with Odell adding: "Clearly, the acquisition and successful integration of VGT has been a significant factor in our performance half-on-half."
The acquisition of VGT, which currently holds a strong position in the Native American Casino market, has created an additional revenue stream for the company.
The Native American Casinos allow Aristocrat to take a cut of the Class II machines profits giving the company a new revenue stream that is unprecedented in Australia. The VGT operated Class II machines are unlike Australian poker machines in that Class II gaming generates results from an electronic bingo game rather than a random number generator.
In the Asia-Pacific region, Aristocrat has maintained its leading share position through strong sales into the new operations in Macau.
Moving forward Aristocrat expects the NPATA performance over the second half of fiscal 2015 to be broadly in line with the first half and the full year profit growth to be continued.
Odell said: "This result will be driven by improved operational performance across key markets and segments, constrained by a smaller US outright sales market, continued low churn in Asia and higher D&D investment as we position for further growth in 2016."