Aristocrat Leisure posted a 9.1% increase in after-tax profit for the first six months of 2014, driven by strong growth from its operations and new unit sales segments in the US, new sales in its home market of Australia and a fivefold increase in online revenues.
The ASX-listed slots and systems giant (ALL) generated A$57.4 million in profit after tax on revenue that was up 7.1% over H1 2013 to $412.5 million on a reported currency basis.
Diluted earnings per share of 10.4 cents was 9.5% higher than the prior year period.
Operating cash flow was up more than 33% to $61 million, and the company will pay an interim dividend of eight cents per share, a 14% increase over the first half of 2013.
“Aristocrat made demonstrable progress in its product-led, share-taking strategy,” the company said. “Across key markets, the Group closed portfolio gaps, better targeted game development and technology resources at key segments and improved front-end sales execution.”
Notably, the company’s share of the US slot operations market increased 18.6%, with a 6.1% increase in average fee per day compared to the first half of 2013. Gains were also achieved in outright sales in the US and Australia.
The company also noted “accelerating momentum” in its online business.
Profit growth will be “strong” over the 12 months to 30th September, with performance “weighted to the second half,” said Chief Executive Officer and Managing Director Jamie Odell, “reflecting the carry-forward of a higher gaming operations installed base, strengthening fee per day and the impact of a full pipeline of compelling new game content.”
He added, “We expect continued ship-share momentum and bottom line benefits, particularly in the US and Australia, from the step-up in D&D investment to be more evident through the second half of the year.”
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