Aristocrat profit rises as currency translation cuts revenue
Australia’s Aristocrat Leisure increased annual profit while reported revenue fell 3.2 per cent. Revenue grew 3.8 per cent at constant exchange rates, separating currency translation from the underlying comparison. The gaming group expanded its normalised earnings margin and increased its annual dividend, with direct sales channels gaining ground in social casino games.
Economics & Markets··Midday
Profit rises despite lower reported revenue
Australia’s gaming company Aristocrat Leisure announced annual results for its financial year ended September.[1], [2]
Continuing operations generated revenue of 6,092.4 million Australian dollars, down from 6,297 million a year earlier. The 3.2 per cent reported decline became growth of 3.8 per cent when calculated at the previous year’s exchange rates. Reported after-tax profit from continuing operations increased 15.2 per cent to 1,364.4 million Australian dollars.[1]
Direct sales gain ground in social casino games
Product Madness, the group’s social casino gaming business, recorded revenue of 1,076.8 million US dollars and profit of 521.4 million US dollars. Its margin rose from 46.3 per cent to 48.4 per cent. Aristocrat attributed the improvement mainly to migration towards direct-to-consumer channels. These channels accounted for 27 per cent of annual social casino revenue and 30 per cent in the second half. The group’s Interactive business increased revenue, including its joint venture share, to 457.2 million US dollars, while profit fell to 122.6 million US dollars.[1]
Annual dividend increases to 101 cents
Aristocrat returned approximately 1.9 billion Australian dollars through dividends and buybacks. Its annual dividend increased from 93 to 101 cents per share. Normalised earnings before interest, tax and amortisation reached 2,236.1 million Australian dollars and the margin increased from 35.5 per cent to 36.7 per cent. Normalised figures exclude specified significant items and discontinued Plarium operations; that adjustment is separate from the exchange-rate calculation.[1]
