A one day wonder was yesterday’s reaction to what appeared to be a solid full year result from gaming machine group, Aristocrat Leisure.
The company posting a 69% surge in underlying net profit to $398.2 million for the year to September, which was a better than expected by analysts with their consensus estimate around $383 million.
The 2015-16 financial year was the first with Aristocrat having full ownership of US group Video Gaming Technologies, which it acquired for $US1.3 billion in July 2014 and it certainly made a difference to both earnings and revenue.
Revenue in fact rose 35% for the year ending September 30 to $2.133 billion. Analysts had expected a profit of $383 million.
And Aristocrat said it expects “continued growth" in the 2017 financial year but did not provide more specific figures.
Full-year profit from ordinary activities after tax rose 88 per cent to $350.5 million.
And for shareholders the payoff with a big boost to final dividend to 15 cents a share, unfranked – up six cents – from nine cents a year earlier.
The interim had earlier been boosted to 10 cents a share from 8 cents, making a full year payout of 25 cents a share against 17 cents. So the shares were up close to 5% in early trading at $15.74, before the started retracing those early gains to end the day around 0.9% higher at $15. It was a modest reaction to what was a solid result, even if it was widely expected.
Directors said in yesterday’s statement that the company’s “investments in top talent, targeted games, cabinets and technology, together with improved execution, underpinned market-leading performance across key markets and segments.”
"Significant share growth was delivered across the US premium gaming operations segment and outright sales segments in the US, Australia and Asia Pacific, supported by further increases in average fee per day and average selling price, and an outstanding result in Aristocrat’s Digital segment.
Aristocrat Chief Executive Officer and Managing Director, Jamie Odell, said “Aristocrat delivered record performance over the twelve months to 30 September 2016, further extending our trajectory of consistent and high quality NPATA growth and cash generation.
“Once again, our performance reflected strengthening operational performance, which in turn drove market-leading share growth and significantly improved returns across key segments.
“Over the coming period, we will continue to focus on growing share and profitability by investing in compelling product portfolios targeted to priority segments in our core business. We will also pursue opportunities in new markets and key adjacencies with the benefit of our expanding capabilities and momentum, consistent with our commitment to grow in the interests of our shareholders, customers and staff” Mr Odell concluded.
