GGRAsia – Aristocrat Leisure profit jumps 9 pct in first half

Aristocrat Leisure profit jumps 9 pct in first half

May 28, 2014 Newsdesk Industry Talk, Latest News

Australia-based gaming equipment supplier Aristocrat Leisure Ltd posted a net profit of A$57.4 million (US$53.2 million) in the six months ended in March 31, up by 9.1 percent from a year before, the company announced on Wednesday.

The increase was fuelled by a better performance in the United States, as well as foreign exchange and tax benefits.

“Increased profitability in North America was driven by outstanding share growth in our gaming operations footprint and average fee per day, together with a higher average selling price and share growth in the outright sales segment,” chief executive and managing director Jamie Odell said in a statement.

Aristocrat expects “strong” profit growth for the full year, Mr Odell concluded.

Revenue for the first half of the year was up 7.6 percent, to A$412.5 million. Earnings before interest, taxation, depreciation and amortisation, or EBITDA, stood at A$99.9 million, an increase of 4.7 percent.

The company said it experienced lower expansion activity in the Asia Pacific region, which excludes domestic market Australia, New Zealand and Japan. “Buying activity across Macau increased in the later part of the period and the business was able to secure a higher share of operator purchases during the period,” Aristocrat reported. Excluding new openings and expansions, revenues in that market grew by 3 percent.

Aristocrat directors authorised an interim dividend of 8.0 AUD cents a share, representing a payout ratio of 77 percent of normalised earnings and an increase of 14 percent compared to the prior corresponding period.