Australian slot manufacturer Aristocrat Leisure Limited announced record earnings for the full year ended September 30, 2017, with revenue up 15.3 percent to AU$2.45 billion, and EBITDA rising 24.2 percent to AU$1 billion.
The revenue figure was a record for single-year earnings. In a filing to the Australian Securities Exchange, Aristocrat credited “a higher quality of earnings and growth across strategic recurring revenue segments” for the results, which included a 17.4 percent increase in operating cash flow to AU$799.1 million, with net profit after tax and before amortization up 36.5 percent to AU$543.4 million.
“Aristocrat delivered high-quality results over the 2017 fiscal year, against a backdrop of mostly flat markets and increasing competitive pressure,” said Aristocrat CEO and Managing Director Trevor Croker. “Industry-leading content, hardware and technology, coupled with effective execution focused on our highest value opportunities, once again underpinned our performance.
“Further growth in our core recurring revenue segments of gaming operations and digital social casino was particularly pleasing, with 52 percent of group revenues deriving from recurring sources during the year as well as growth in outright sales over the period. This represents further progress in ensuring Aristocrat delivers sustainable returns and cash flow over time, consistent with our strategy and shareholders’ interests.
“During the reporting period, Aristocrat invested behind our core business while also making progress in unlocking attractive growth opportunities in adjacent markets and segments.
“Going forward, Aristocrat will continue to target high-quality growth, with the benefit of our established performance momentum, broadening capabilities, strong balance sheet and growing recurring revenue base.”
The company has announced that it will pay a dividend per share of AU$0.34, up from AU$0.20 in 2016.
Last week, Aristocrat announced that it has entered into a binding agreement to acquire 100 percent of social gaming company Big Fish Games, Inc. for US$990 million in cash, subject to customary completion adjustments.
Big Fish, a wholly owned subsidiary of Churchill Downs Incorporated (Churchill Downs), is a global publisher of free-to-play games that operates across three key business lines focused on specific game segments, including Social Casino, Social Gaming and Premium Paid Games.
The company’s largest social casino application “Big Fish Casino” is a top-ranking social casino application, with industry-leading user monetization levels.
Finally, the company announced that its Aristocrat Technologies subsidiary has completed the acquisition of the complete source code and hardware design for a promotional kiosk solution developed by Phi Gaming, LLC. Additionally, the two parties entered into a development agreement to further acceleration of Aristocrat’s Oasis 360 Loyalty Kiosk.
The agreement extends Aristocrat’s digital content and advanced marketing solutions within its multiple award-winning Oasis 360 casino management system portfolio.
Aristocrat officials said they chose Phi Gaming because of its penchant for service and delivery of quality innovative products. Like the Oasis 360 system, Phi Gaming’s platform is built on open architecture, giving the Oasis 360 system flexibility to integrate into casino management systems of any property’s choosing.
“Phi Gaming’s modern kiosk design is best-of-breed, and we are excited to add their kiosk solution to the Oasis 360 suite of products,” said Aristocrat Vice President of System Sales Clark Warren. “This acquisition reflects an important milestone in Aristocrat’s commitment to provide an end-to-end solution for our customers.”
