The acquisition by Aristocrat Leisure Ltd of U.S. slot machine specialist Video Gaming Technologies Inc (VGT) has been “highly accretive” to Aristocrat’s U.S. operations, more than tripling U.S. recurring revenue, said Aristocrat’s chief executive Jamie Odell (pictured) at the firm’s annual general meeting on Friday.
VGT, a maker of so-called ‘Class II’ gaming machines used in North America’s tribal gaming market, was acquired by Aristocrat in a deal closed in October 2014.
“This outstanding strategic acquisition is highly accretive, more than tripling our U.S. recurring revenue footprint, and it brings together complementary businesses with aligned cultures and a shared focus on great games and outstanding customer service,” Mr Odell stated.
He added however that the group expected increased debt levels associated with the VGT acquisition, as well as “a significant increase in interest costs” over the 2015 fiscal year.
Aristocrat paid US$1.28 billion in cash for VGT, according to company filings.
Mr Odell reiterated comments made during the 2014 fiscal results that “regulatory change” had brought “disappointing results” for Aristocrat in Japan and Asia Pacific.
He also said that to face the challenge of the global competition for top management talent, Aristocrat would commission an “independent review of the board” to seek advice on “succession planning” and for “improving board skill sets and experience wherever opportunities present”.
Dec 13, 2018Perception of quality of life among a sample of Macau’s casino dealers and staff employed in casino cage operations is that they have a worse time than people in other casino jobs, according to a...
Dec 13, 2018
Dec 13, 2018
"The MSAR [Macau Special Administrative Region] Government is always maintaining its policy not to have imported labour to work as dealers. This position has not changed"
Lionel Leong Vai Tac
Macau’s Secretary for Economy and Finance