A survey of the slot-machine market released last week by JP Morgan Securities Australia Ltd. predicts that Australia’s Aristocrat Leisure Limited is poised for a period of sustained growth, while its Australian rival, Ainsworth Game Technology, may be going in the other direction.
In predicting that Aristocrat is likely to outperform its competitors, analysts Donald Carducci, Shaun Cousins and Shalin Doshi wrote, “Aristocrat is well positioned for growth and looks set to enjoy a significant pipeline of outperformance during the remainder of 2018 and into 2019.”
The analysts reported diminished expectations on sales growth for Ainsworth, noting competition from niche manufacturers as casinos look to diversify their offerings.
The report sees Aristocrat as the leading beneficiary of another year of growth in the United States market, where it currently has a 17 percent share of all machines on gaming floors. It also notes that Aristocrat maintains the largest share of its home market in Australia, where Ainsworth product tends to perform better than in the U.S.
The survey report said successful launches of new products and further improvement in its library of titles has allowed Aristocrat to increase its share of the North American market at the expense of its competitors, and achieve annual rates of sales and earnings growth greater than 10 percent.
