Industry News

& Articles

Aristocrat Leisure Delivers Strong Half-Year Operating Revenue

Facebooktwitterlinkedin

Gaming technologies provider, Aristocrat Leisure has released its half-year results for the period ending 31 March 2020. Accounting for the unprecedented series of events that have occurred, the results further reflect the underlying strengths and resilience of the firm’s product-led strategy. The beauty of Aristocrat lies within its ability to generate its revenue both through land and digital channels. Undeniably, results were significantly impacted by the COVID-19 related shut down of land-based consumers. This is evident in the 29 per cent dip in volumes in the six months as venue closures subsequently led to the halting of capital spending by consumers.

Nevertheless, the North America Gaming Operations remained resilient. Specifically, Class III Premium installed base surged close to 10 per cent to 23,728 units backed by Aristocrat’s leading penetration of state-of-the-art hardware configurations. The firm was once again crowned the ‘Best Overall Supplier of Slot Content’ at the Annual EK Gaming Slot awards in March 2020. Moving forward, land-based operations are expected to reconvene on a phased basis. The gradual acceleration of gaming floors will be witnessed alongside the increase in consumer confidence and the easing of travel restrictions in the near future.

On the other hand, digital revenue grew 18.5 per cent to that of US$696 million. From an operational standpoint, the outstanding performance was driven by substantial growth in RAID: Shadow Legend, reaping US$160 million in bookings. Additionally, the solid performance of Cashman Casino was also backed by a 30 per cent increase in average books per daily active user to US$0.50. The firm’s digital segment has proven to be its next rising star.

This is because under the leadership of Digital CEO Mike Lang, a newly formed Digital Leadership Team, reinforces the role it plays in the Aristocrat’s growth. Moving forward, Aristrocrat’s focus will be centred on technological improvements to spur growth across both digital and land-based revenues. Collectively, the group’s revenue came in at $2.25 billion, a 7 per cent increase relative to the prior corresponding period. The figure includes the 6 per cent decline in land-based revenues, which was offset significantly by the 19 per cent growth in digital revenue.

Back in November 2019, the firm recognised a deferred tax asset of approximately $1 billion. Consequently, even though profit for the half-year came in at $1.3 billion, the deferral drove net profit in the six months to $305 million, a 14 per cent decline relative to the prior corresponding period. Nevertheless, Aristocrat believes that the deferral will generate significant cash tax savings over the long term. More broadly speaking, the firm has adopted prudent measures to enhance its liquidity and balance sheet position. These include the suspension of FY2020 interim dividend, the successful securitisation of an incremental US$500 million Term Loan B facility and a $100 million reduction in second half operating expenditure relative to the prior corresponding period.

By Caroline Wong 

Click here for a 7 days access to our Lotus Blue Portal.

Comment on this company

Latest Stories

Macmahon Holdings Reaffirms FY20 Guidance

Coronavirus has had a massive impact worldwide and has shaken investor confidence in many…..

CIMIC Group Silent On Fresh Cash Flow Doubts

The international, multifaceted contractor CIMIC Group (ASX: CIM) has seen their Thiess.. …

Credit Corp Successfully Completes Share Purchase Plan

Local debt collection company, Credit Corp Limited (ASX: CCP), has today announced…..

More for you

Wisetech Reshuffles Payout Arrangements

Founder and CEO of WiseTech Global (ASX: WTC), Richard White oversaw renegotiations… …

Kogan.com Struggles To Appease Matt Blatt Customers

Turbulent macroeconomic developments across the world have created unique circumstances.. …

Seven Group Becomes Substantial Holder of Boral

Back in March when Australia was struggling to battle the coronavirus pandemic, Seven.. …

Woolworths Rewards Employees With $57m in Shares

Woolworths recognises the value of essential workers, with over 30,000 full-time employees each…..

UAC Energy Makes Attractive Bid for Infigen

UAC Energy Holdings has today, 03 June 2020, proposed a new addition to its business.. …

ACCC Intervenes in Qantas’ Acquisition

Qantas (ASX:QAN) has recently attracted scrutiny from the  Australian Competition and.. …

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

Disclaimer
KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

Fees
As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

Privacy
You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.

CLAIM YOUR FREE E-BOOK &
7 DAY ACCESS TO LOTUS BLUE

STOCK MARKET SUCCESS

KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.

CLAIM YOUR FREE E-BOOK WHEN YOU LOGIN TO LOTUS BLUE INVESTMENT PORTAL

Latest TV Commercial