Gambling equipment, software and games supplier reports half year results ahead of expectations
The success of Australian gambling equipment, software and games supplier Aristocrat at the half-year 2014 point has received a boost from the company's online activities, where the group's internet and social gaming businesses contributed strongly with a 147 percent y-o-y increase over the corresponding quarter last year to A$19.5 million.
Online operations registered a five-fold growth in revenues in the first half when compared to last year.
Overall, Aristocrat's performance was ahead of expectations for the six months ended , with revenues up 7.6 percent to A$412.5 million, and net profit after tax and non-controlling interest up 9.1 percent at A$57.4 million.
Management reported that H1-2014 was a period of strong growth in the US gaming operations market, share growth in both the US and Australian outright sales markets, and maintenance of its leading position in Asia Pacific markets.
EBITDA was up 4.7 percent at A$99.9 million (H1-2013: A$95.4 million), and the company reported closing net debt at A$233.7 million (H1-2013: A$185.1 million) – up 6.3 percent.
Operating cash flow of A$61 million was almost 34 percent higher than in H1-2013, mainly due to higher revenues over the half, together with cash management initiatives.
An interim dividend of 8 cents per share has been declared.
Chief Executive Officer and Managing Director, Jamie Odell, said "Aristocrat has reported positive performance over the six months to building on our established trajectory of NPAT growth. These gains flow directly from the rapid improvements we are making in the breadth, depth and competitiveness of our game portfolios, which have been exceptionally well received by customers and players across our priority segments.
"The performance of our Online business represents an exciting and expanding value stream. It is quickly developing meaningful reach and performance momentum, and it's clear our strategy of leveraging premium Aristocrat content to drive user numbers and profitability is gaining traction.
"We anticipate strong NPAT growth over the twelve months to largely driven by improving operational performance across key markets and segments, partly offset by higher D&D investment as we build for the future, in line with our strategy."
Online Casino News Courtesy of Infopowa