Poker machine maker Aristocrat Leisure (ALL) has promised more strong growth for the six months to September after confirming last week’s upgraded guidance for the six months to March 31.
The company, a major global poker and gaming machine maker, boosted interim net profit 66% to $183.2 million.
The company said the rise was in line with expectations and due to strong growth in its Australian and North American markets, as well more punters using its social gaming apps.
Aristocrat boosted interim dividend 25% (or 2 cents) to 10 cents a share on a 47% jump in revenue to $1.01 billion. The shares rose 4% to $12.75, and ended at $12.45, up 0.1%.
“Our focus on growing share and profitability by investing in compelling product portfolios, targeted to priority segments and supported by improving execution, is delivering tangible and sustained results, despite generally flat and highly competitive market conditions,” Aristocrat CEO Jamie Odell said in yesterday’s interim results statement.
At the heart of the improvement is the strong earnings contribution by the US-based machine maker VGT which it bought for $1.3 billion in 2014, and “social casino” game maker Product Madness, acquired in 2012, where punters bet on virtual slot games like Heart of Vegas.
With the forecast of a repeat of the first half surge in the current half, analysts are now looking for a 50% to 60% lift in annual net profit to $366 million against earlier forecasts around $307 million.
“Aristocrat expects NPATA for the second half of fiscal year 2016 to be broadly in line with the first half, maintaining our established trajectory of full year profit growth, assuming stable trading conditions and applying prevailing exchange rates,” Mr Odell said yesterday.
Directors said other key features of the result included:
- Total segment revenue increased 37% in constant currency and 47% in reported terms, while EBITDA increased over 40% in constant currency and 53% in reported terms compared to the prior corresponding period.
- Aristocrat’s continued investment in talent, content, hardware and technology translated into exceptional operational performance, driving market-leading share growth and profitability across core markets and segments over the six months to 31 March 2016.
- Aristocrat made further progress in growing the contribution of revenue from recurring sources in its overall revenue mix, with 50% of total Group revenues deriving from recurring sources as at 31 March 2016, despite the extraordinary revenue growth delivered in the key Australian outright sale market during the period.
- Normalised operating cash flow of $285 million was over 116% higher than the PCP, reflecting the impact of accelerating operational performance and the Group’s continued focus on cash management during the reporting period.
- Aristocrat’s leverage ratio improved to 1.9 times at period end, from 2.9 times pro forma at 31 March 2015, reflecting earnings growth and significant free cash flow generation across the Group.
