Date: 16.05.2024

by Adam Dworak

Aristocrat Reports Robust First-Half Financial Results with Significant Growth Across Key Segments

Aristocrat, the Australian slot machine manufacturer and online gaming content provider, has announced financial results for the first half of the year. The company’s revenue rose to just under AUD3.27 billion (US$2.19 billion), marking a 6.1% increase from the prior-year period.

Aristocrat’s profit after tax and before amortization of acquired intangibles (NPATA) reached AUD752.1 million, an 8.6% increase from the previous year. This positive outcome was further bolstered by a 17.6% year-on-year increase in earnings before interest, taxation, depreciation, and amortization (EBITDA) on a normalized basis, which reached nearly AUD1.20 billion.

Driving Growth

The company’s casino technology segment, “Aristocrat Gaming,” was a standout performer during the first half, significantly contributing to the overall revenue growth. The group’s North American gaming operations delivered a particularly strong result, contributing to the impressive 5.8% year-on-year increase in revenue in that market, which reached US$950.2 million. Aristocrat’s installed base in North America also expanded by approximately 3,200 units during the period.

Success Beyond North America

The Rest of World segment, which includes markets outside of North America, also contributed significantly to Aristocrat’s success. Revenue in this segment increased by 6.6% year-on-year, reaching AUD376.7 million, with profit standing at AUD179.3 million, a 29.1% jump from the previous year.

This performance was primarily driven by strong growth in Asia, where Aristocrat experienced a doubling of revenue and profit compared to the prior-year period. Key drivers of this growth included successful game releases like “Dragon Link” and “Bao Zhu Zhao Fu,” as well as the company’s participation in new venue openings.

Navigating Market Challenges

Aristocrat’s Pixel United division, which encompasses the company’s Product Madness, Plarium, and Big Fish Games businesses, generated US$875.0 million in interim revenue, a slight 1.8% decline year-on-year. However, the division’s profit rose by 16.8% to US$306.9 million, showcasing the team’s ability to navigate the challenges of the market and optimize profitability.

In a move to unlock further value, Aristocrat has announced a strategic review of its “casual and mid-core gaming assets,” including its Big Fish Games (excluding the Big Fish Social Casino assets) and Plarium Global businesses. The company stated that no decisions have been made yet, and it will assess all options to maximize shareholder value and ensure the ongoing success of these operations.

Impressive Growth in Online RMG

Aristocrat’s online real money gaming (RMG) segment, known as Aristocrat Interactive, continued to deliver impressive results, with revenue growing by 48.6% year-on-year to US$71.9 million. Profit for the segment surged by an impressive 207.7% during the same period, reaching US$20.0 million. This strong performance was driven by new customer installations, higher hardware sales, and the scaling of the iGaming business.

Strategic Acquisitions and Leadership Appointments

Aristocrat completed the acquisition of RMG provider NeoGames SA in late April. The company also announced the appointment of Moti Malul, previously the CEO of NeoGames, as the new CEO of Aristocrat Interactive.

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