Aristocrat Leisure Records a Staggering 220%, Digital Leads the Way
According to available information, the company generated $55 million in revenue, which represents a staggering rise of 220%, while digital growth has been cited as the main driving force behind such an impressive result.
Two Important Acquisitions Made a Difference
Aristocrat is widely known for its electronic gaming machines which can be found at casinos around the globe, but the company has recently increased its presence in the online gaming market. Back in August last year, Aristocrat acquired Plarium, an Israeli social gaming company for $500 million, while 2018 began with the purchase of the US-based gaming company Big Fish Games. The acquisition of the Seattle company made Aristocrat the second-biggest provider of online casino games in the world.
Big Fish Games is an invaluable asset, with a high-quality portfolio of desktop and mobile games and with 12.4 million active users on a monthly basis.
It’s evident the two acquisitions are starting to pay off, with revenues from the company’s digital division recording a growth of more than $84 million.
The report revealed that Aristocrat’s overall after-tax profit had jumped to $256.5 million, recording an increase of 2.8%. This number could have been higher if it hadn’t been for various expenses related to the aforementioned acquisitions.
Digital Has Become the Leading Force
Trevor Croker, Chief Executive Officer at Aristocrat Leisure pointed out the company’s performance in North America and stressed the digital gaming division had been especially strong, with the number of online daily active users rising to 8.3 million.
Croker stated Aristocrat would continue to push for growth by increasing its strategic investment in design and development in order to protect and extend market-leading positions. He also added the company expected further growth in its social casino and social games business, with increased investment in user acquisition associated with the launch of new apps across all business units.
The report had a positive impact on Aristocrat’s share price, which went up by more than 8%, ending the day trading at $30.04.
According to Croker, the latest results clearly reflect the company’s strategy and at the same time highlighting its ambition. Digital division will expand in the coming period, with a vast array of new products to be made available to customers across the globe. Investing more funds will be crucial if the company wants to keep the current market positions and grow further.
Nick Caley, an analyst for one of Australia’s leading financial advisory firms Baillieu Holst, said the Aristocrat’s digital division had taken over the leading position within the company and added it had become the true growth driver.
Based in Sydney, and with offices in South Africa, Russia, and the United States, Aristocrat Leisure is the largest manufacturer of gambling machines in Australia. The company produced its first machines back in 1953, and today is the second largest manufacturer of slots machines in the world, distributing its gaming products in over 200 jurisdictions.
- European Gaming: https://europeangaming.eu/portal/latest-news/2018/05/25/20581/aristocrat-post-220-revenue-growth-on-digital-growth/
- The Sydney Morning Herald: https://www.smh.com.au/business/companies/digital-growth-rockets-at-gambling-giant-aristocrat-20180524-p4zh6u.html
- European Gaming: https://europeangaming.eu/portal/latest-news/2018/01/16/13665/pokies-company-aristocrat-moves-to-mobile-gaming-with-1-3b-acquisition/
- Wikipedia: https://en.wikipedia.org/wiki/Aristocrat_Leisure