Everyone loves it when the bottom line is looking a little healthier, and everyone from the CEO to the staff at Aristocrat Leisure Ltd must be over the moon after their online segment has managed to grow 2.8% since January this year. The recent growth in poker machine producer’s books has been put down to the expansion of their online business.
The Financials Reviewed
The company informed the Australian Stock Exchange that the net profits earned up until the 31st of March 2018 amounted to AUD256.5 million or US$193.94 million, this was significantly higher than last year’s AUD249.6 million or $187.4 million. These earnings were calculated post-tax, the amount earned prior to tax or any deductions was equal to AUD1.58 billion. The spike in growth from the previous year showed a 28.5% increase in net income.
The price of Aristocrat shares have climbed by 8% hitting just over AUD2 or US$1.68 before the close of business today. The main income drivers for this year have been the growth the company has experienced with the North American markets, as well as their online and e-gaming offerings to the public.
The CEO’s Thoughts
The CEO Trevor Cocker stated that the company aimed to continue the current wave by carrying on their long-term vision with giving further attention and budgetary allowance to the design and development departments. The online offerings have taken over the lion’s share of the company’s earnings, total income from purely online sources increased to a total of AUD84 million or US$63.41 million.
Recent additions to the company of Big Fish Games, which was purchased for AUD1.3 billion, and Plarium, a game development company based in Israel which cost AUD635 million also helped to boost the earnings profile of the companies.
However, certain parts of the company did not do as well as previous years. Items in the International Class III, such as the slot machines which have been exported throughout Asia, have experienced a 16.3% decline landing on AUD108.2 million, the CEO stated that the main reason for this was due to the high level of new casinos having opened during this time.
The sheer volume of new competition would cause a natural lull within the revenues of pre-established businesses which would also naturally correspond to the earnings of the Aristocrat’s profits as well. When asked of the future, Aristocrat confirmed that they are most certainly well on the path to achieving their goal of having significant growth within the net profit after tax section.