Stability key to Aristocrat success

Stability key to Aristocrat success

Tuesday, May 26, 2015 Totally Gaming
CEO hails gaming machine maker's stable revenue streams

Gaming machines and casino management systems supplier Aristocrat is enjoying greater stability than ever before thanks to an increasing focus on recurring revenues, according to CEO Jamie Odell.

In a trading update in which Odell praised a “genuinely transformative” H1 period through to March 31, the company’s stable income sources were highlighted as a major benefit in an industry that can be unpredictable at times.

Aristocrat posted revenue of Aus$685m (€489m/$533m) for the six-month period – a 73.5-per-cent increase year-on-year – while EBITDA rocketed by 121.3 per cent to Aus$243.4m.

Statutory profit after tax also increased by 35.3 per cent to Aus$77.6m as Aristocrat successfully integrated Video Gaming Technologies following a takeover in October last year.

“Aristocrat is delivering on our promise to grow recurring revenues in order to reduce performance volatility and generate superior, sustainable returns for shareholders,” Odell said.

“Year on year, we have more than doubled the percentage of total Group revenues deriving from recurring sources to 47 per cent, and growth across all our key recurring revenue segments is a particularly important and positive feature of this result.”

However, Odell warned that despite being driven by improved operational performance across a number of key markets and segments, the company’s financial performance in the second half of the year would also be constrained by a smaller US outright sales market and continued low churn in Asia.

“The six months to March 31 have been genuinely transformative for Aristocrat,” Odell said. 

“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.

“Clearly, the acquisition and successful integration of VGT has been a significant factor in our performance half on half, but our results also reflect accelerating operational momentum across key markets and segments.”

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