Aristocrat Leisure announced its financial results for the six months on Monday. The games supplier said a strong digital performance helped it to steady revenues and deliver positive earnings in the first half of its 2020-2021 financial year, despite the effects of COVID-19.
Normalised profit after tax and before amortisation of acquired intangibles of $411.6 million, represented an 11.8% increase compared to the prior corresponding period, largely driven by the growth in Digital.
Group revenue decreased only fractionally (1.0%) to $2.2 billion, despite COVID-19 impacts in Gaming markets over the period, and foreign exchange headwinds. On a constant currency basis, revenue was actually 10.7% higher than the PCP, reflecting the operational performance in Digital, Americas, and ANZ Gaming, partly offset by international markets which remained largely closed.
Aristocrat’s portfolio of scaled, Digital and Gaming assets continued to grow and diversify over the six months. Almost 80% of revenue was derived from recurring sources in the period. The group’s growth continues to be underpinned by sustained investment in game design, development, and technology, with a $242.7 million investment in Design & Development in the period, representing 11% of revenue.
The company noted that it plans for strong growth over the full year to 30 September 2021, assuming no material change in economic and industry conditions. It is expected that growth will be driven by:
Enhancing market-leading positions in Gaming Operations
Sustainable growth in floor share across key Gaming Outright Sales markets globally
Further growth in Digital bookings, pending timing and success of new game launches
Continued D&D investment
An increase in SG&A across the business, including expanding capabilities to create new business
Aristocrat Chief Executive Officer and Managing Director, Trevor Croker, said “The outstanding momentum we’ve delivered this half reflects our unwavering focus on the things we can control. Despite the uncertainties driven by COVID-19, we enter the second half of fiscal 2021 with excellent momentum, resilience, and confidence with a strong balance sheet to continue to invest organically to grow share and accelerate growth through M&A in line with our rigorous criteria,”