Aristocrat, one of the house names of the iGaming and casino industry, has seen a strong year of growth bolstered by the brand’s rapid digitalization. The results soared beyond any imaginable forecasts.
Aristocrat Hits AUS$1 Billion
Aristocrat’s financial results were announced on November 29, and they revealed a company that had been growing at a heady pace. Despite a small tumble in the share price.
Aristocrat reached AUS$1 billion in revenue along with intensifying its growth across North America, the company beat its 2017 turnover by 47.7%, a staggering number for any business in the iGaming and casino sector.
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Sales went up all the way to $3.624 billion throughout the entire financial year that concluded on September 30. Digital revenue made a breath-taking leap worth 250%, revving up the results to $1.339 billion. Profits hit a new high, at $438.2 million, going up by nearly $159 million.
Naturally, it was not all Aristocrat’s doing per se. The company acknowledged that the acquisition of Plarium and Big Fish Games has helped it plunge into new markets and offer an even more diversified experience to its customers.
Individual games, such as FaFaFa Gold and Lightning Link have also contributed to the overall offer of the brand. The release coincided with a particularly auspicious moment in the development of the industry, with digital users increasing by nearly 500% in the 12 months leading to September 30.
Based on this metric alone, Aristocrat has been one of the most, if not the most, grossing iGaming developers in the past financial year.
Revenues Keep Growing
Another important market for Aristocrat was the Americas, with multiple countries there pushing for a broader iGaming industry. Some of the flagship markets for the company were the United States, Canada, Mexico, and Argentina, occasioning nearly 45% of the company’s total sales.
While Australia and New Zealand remain relatively tepid areas, Aristocrat has been trying to equally consolidate its presence there as well, managing to notch up nearly 13% of its total sales in the region. However, understandable impediments such as the size of the market are getting in the way.
Aristocrat has not been stinting in bolstering its own business activities. In the past years, the products developed by the brand have acquired a distinct look reminding that of actual video games, which may be the new direction of the operator. The money that went into design & development (D&D) stood at $431.6 million, a significant bit of the developer’s war chest.
The expenses that went in bolstering up the design of products accounted for 11% of the costs the company reported over the period. In 2019, Aristocrat intends to continue investing in the design & development segment, while keeping the sum in line with the posted 11% costs this year.
One surprising development did occur, however, with the company’s share value slumping by 9% on Thursday. According to experts, this dip was occasioned by an expectation-bubble, with investors probably hoping for even better interests.
As notable analysts noted down, however, the more the “expectations cycle” continues, the more difficult it’s to meet the expectations of everyone involved.