Slot manufacturer Aristocrat Leisure Ltd.’s diversified mobile game product portfolio offers a good revenue opportunity while wisely spreading the risk, according to a report from JP Morgan.
Mobile gaming is a high-growth industry with compound annual expansion of revenue at circa 14 percent, noted the report. “Aristocrat’s increased exposure to digital (38 percent of financial year 2018 revenue) is a positive,” wrote JP Morgan analysts Donald Carducci, Shaun Cousins and Shalin Doshi.
Aristocrat is in the process of acquiring social gaming firm Plarium Global Ltd for US$500 million, to add to its stable of online casino and social gaming brands. Aristocrat’s chief executive Trevor Croker noted of the Plarium deal that it increased the group’s addressable consumer market from approximately US$3.2 billion in the social casino segment, to about US$25.4 billion “when including the strategy, role-playing game and casual segments.”
“Aristocrat’s diversified mobile game portfolio approach has the potential to manage risk and monetize (mobile game assets) better,” said the report.
