Australian gambling machine manufacturer, Aristocrat Leisure recently announced that it would be increasing its earnings forecast for the first half of the financial year. This follows a period of unexpectedly buoyant growth in its digital and gaming businesses. In the six months preceding 31 March, Aristocrat stated that its net profit after tax was projected at AUD 346 million.
The company’s NPATA (Normalised Net Profit After Tax and Before Amortisation of Acquired Intangibles), is expected to reach $412 million. This represents an increase of 12% when compared to the same period in 2020. This amount does not include the effects of a $19 million retention expense that emerged as an associated cost in the acquisition of Plarium.
Growth spurt
The past year has been full of plenty of unexpected developments and despite this Aristocrat reported that it produced above-average growth within the industry. This upswing in profits is due to bookings which created revenue and profit growth year-on-year. The company stated that this was made possible by a large investment in live operations, features, new online casino content and user acquisition.
Trevor Croker, Aristocrat’s CEO and MD explained that the results demonstrate the company’s ability to adopt winning strategies. He further stated that the company’s choices enabled it to maintain its investments in its products, people, customers, and culture amid a global health crisis.
Croker went on to say that the company expects that the year will see the economic conditions across key land-based and online casino remain on shaky ground. With this in mind, the firm will keep attending to key crucial factors like visitation at gaming venues, currency headwinds and consumer needs.
Fair weather ahead
The company elaborated that its EBITDA, or (Normalised Earnings Before Interest, Tax, Depreciation and Amortisation) is expected to hit $750 million, a growth of 6% compared to the first half of 2020.
Aristocrat revealed that it recorded phenomenal growth in its online casino segment thanks to ideal conditions in the US, New Zealand and Australia markets as well as increased customer engagement and product performance.
Mr Croker wrapped up, saying that the firm intends to aggressively pursue the remainder of its strategy in the second half of the fiscal year. Increased investment will bolster the releases of new games and strategic competencies which are geared towards cultivating Aristocrat’s projected long-term growth.
