By Vanessa Cavasinni, editor Australian Hotelier
Aristocrat Leisure Limited (ASX: ALL) yesterday announced its half-yearly results for the period ending 31 March 2016, with a significant growth in profits and operations for the gaming company.
The company’s net profit after tax and amortisation (NPATA) grew from $110.1 million in 1H2015, to $183.2 million in 1H2016 – a growth of 66 per cent. Aristocrat’s key markets of North America and Australia made up the bulk of the profits, bringing in $34.7 million and $30.4 million respectively.
Total segment revenue increased by 47 per cent, which Aristocrat has attributed to its continued investment in “talent, content, hardware and technology, translated into exceptional operational performance”. In Australia, this specifically has been credited to improvements in game and cabinet portfolios, with the pub market taking up a large portion of these cabinets and games.
“I think this result shows that Aristocrat is very focused on ensuring we have the right products and services for our pub customers, and that we are working hard to respond to their needs with a portfolio that delivers,” said Mitchell Bowen, managing director of Aristocrat’s Australia and New Zealand business.
Interestingly, revenue and profit from the company’s digital arm have more than doubled in comparison to 1H2015, with sustained growth of its mobile game, Heart of Vegas™.
Aristocrat CEO and managing director Jamie Odell, was pleased with the company’s half-yearly performance.
“Aristocrat delivered outstanding results over the first half of fiscal 2016, representing our tenth consecutive period of earnings growth. This fact underlies the sustainability of our performance and the quality of the strategy upon which it’s based.”
He added: “Our focus on growing share and profitability by investing in compelling product portfolios, targeted to priority segments and supported by improving execution, is delivering tangible and sustained results, despite generally flat and highly competitive market conditions.”
Looking ahead to 2H2016 Aristocrat expects moderate growth in North America and further growth in digital sales, while the Australia/New Zealand component of the business will likely cycle over the strong earnings period and will probably not repeat such profit growth.
“Our expectations for the full year to 30 September 2016 continue to be as set out in the trading update issued to the market earlier this month. Specifically, Aristocrat expects NPATA for the second half of fiscal year 2016 to be broadly in line with the first half, maintaining our established trajectory of full year profit growth, assuming stable trading conditions and applying prevailing exchange rates,” concluded Odell.