The prominent Australian gaming corporation, Aristocrat Leisure, announced exceptional financial results for the initial six months of its 2016 fiscal year. The company’s revenue experienced a substantial increase of 47%, reaching AU$1 billion (equivalent to approximately £490 million) for the period concluding on March 31st. This remarkable expansion can be attributed to the company’s robust performance in its primary markets of North America and Australia.
Several key elements have contributed to the company’s achievements, including an expanded market presence, elevated average selling prices for its gaming devices, and growth within its digital social gaming division. Notably, the company’s digital segment has witnessed an unprecedented surge in daily active users, further strengthening Aristocrat’s financial standing.
Profitability has mirrored the upward trajectory of revenue. Profit after tax and before amortization of acquired intangible assets (NPATA) exhibited a remarkable 66% year-over-year growth, reaching AU$183.2 million. Moreover, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) experienced a significant 53% increase, reaching AU$372.4 million.
While the traditional gaming machine market in Australia performed admirably during this period, a substantial 50% of Aristocrat’s revenue now originates from recurring revenue sources. This underscores the company’s successful diversification strategy and reduced dependence on conventional gaming channels.
Chief Executive Officer Jamie Odell conveyed his contentment with the company’s accomplishments, emphasizing that this marks the tenth consecutive half-year of profit growth for Aristocrat Leisure. Looking forward, Odell anticipates that NPATA for the latter half of fiscal year 2016 will remain largely in line with the first half.
Investors responded favorably to this impressive earnings announcement. Aristocrat Leisure’s share price on the Australian Securities Exchange experienced a slight increase, rising from AU$12.43 to AU$12.45 on Thursday.
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