Record numbers in the Australia-New Zealand and North American markets have driven global slot machine developer Aristocrat Leisure Industries to a 47.7% increase in operating revenue and 34.3% rise in normalized profit after tax and before amortisation (NPATA) for the 12 months ended 30 September 2018.
Revenue for the year hit AU$3.62 billion while NAPTA reached AU$729.6 million, up from AU$543.4 million in the prior year.
Aristocrat said the results reflected strong performance delivered across the group’s global portfolio, including profit growth of 16% in the Americas land-based business to US$650 million, a 9% increase in profit in the ANZ business to AU$207 million and profit growth of over 170% to US$331 million in the digital business.
Revenue in ANZ grew by 5.5% for FY18 to AU$455.2 million, driven by the company’s strong game portfolio in the region and configuration of its Helix cabinet. The Americas performed even better, with revenue up 12.9% to US$1.22 billion, although the International segment experienced a 5.8% decline to AU$202.3 million due to fewer casino openings than in the prior year.
Nevertheless, Aristocrat CEO and Managing Director Trevor Croker praised the company’s progress in the face of largely flat markets and “increasing competitive pressures.”
“Pleasingly, the result was driven by strong organic growth across our land-based businesses and [social casino] Product Madness, driven by an increasingly broad and competitive product portfolio together with effective execution and a focus on customers and innovation,” he said.
“This result was boosted by two significant digital acquisitions that made a positive contribution to the group and added to our earnings diversity, capabilities and scale.
“Recurring revenue, including Gaming Operations and Digital Social Casino, accounted for 65% of group revenues, up from 52% in the prior year. This highlights the progress Aristocrat has made in delivering sustainable earnings and cash flow growth over time, consistent with our strategy and shareholders’ interests.
“Leveraging our strong balance sheet, operating cash flow generation and design and development capability, Aristocrat will continue to focus on unlocking growth in our core and in attractive adjacencies, for the benefit of our customers and shareholders.”
