GGRAsia – Aristocrat posts US$320 million 1H profit

Aristocrat posts US$320 million 1H profit

May 17, 2021 Newsdesk Industry Talk, Latest News, Top of the deck

Casino slot machine maker and digital games provider Aristocrat Leisure Ltd said on Monday that its normalised net profit after tax and before amortisation of acquired intangibles (NPATA) for the six months ended March 31 this year, was AUD412 million (US$319.6 million). The figure was up by around 12 percent in year-on-year terms, the company stated.

The result was featured in a statement issued by Aristocrat, disclosing partial data on the firm’s financial performance for the period.

According to Aristocrat, its statutory net profit after tax for the six-month period ended March 31 stood at AUD346 million. Aristocrat had reported statutory net profit after tax of almost AUD1.31 billion in the prior-year period, fuelled by recognition of a AUD1 billion deferred tax asset.

Aristocrat’s full financial results announcement for the six months ended March 31 is scheduled to be issued on May 24.

In a note commenting on Aristocrat’s financial performance, brokerage JP Morgan Securities Australia Ltd stated that full-year 2021 was “a clear upgrade” for the firm. Analysts Don Carducci and Abhinay Jeggannagari added: “Full-year 2022 and 2023 is where we’re keeping an eye on consensus/optimism, especially as cost would be coming back into the business, a key focus for [the] land-based division.”

Aristocrat said in its Monday statement that normalised earnings before interest, taxation, depreciation and amortisation (EBITDA) stood at AUD750 million for the six months ended March 31, representing growth of about 6 percent in year-on-year terms.

The firm’s gaming business recorded “exceptional product performance and customer engagement” over the reporting period, the company said. That was coupled with “stronger-than-expected consumer sentiment and economic conditions in the United States and in the Australia and New Zealand region,” which overall drove profit growth compared with the prior-year period.

Aristocrat’s digital segment “delivered above industry-average growth in bookings, translating into revenue and profit growth compared to the prior corresponding period,” the firm said. Overall demand continued to be elevated, compared to pre-Covid-19 levels, it added.

Aristocrat’s chief executive and managing director, Trevor Croker, said in comments included in the company’s Monday statement, that the group had “continued to take share” from competitors, and “maintained… leadership of key gaming markets and segments.”

Mr Croker added that Aristocrat expected economic conditions across key markets to “remain uncertain” over the next few months, because of ongoing pandemic-driven volatility. “We will continue to rigorously execute our strategy over the second half of fiscal 2021, with increased investment in design and development, user acquisition to support new game launches and existing games, and strategic capabilities that will sustain our longer-term growth,” he stated.