Aristocrat doubles half-year profit

Slot machine manufacturer Aristocrat Leisure has confirmed a surge in profit for 16H1, with net profit after tax and before amortization of acquired intangibles up 66 percent to A$183.2 million (US$131.9 million).

The results were expected after the group announced an approximate A$183 million reading to the market two weeks prior.

The supplier said strong growth in the Americas business, and a full period of VGT drove up post-tax profit, whilst the Australia / New Zealand business delivered significant share gains across all market segments driven by performance in its Helix Cabinet, Lightning Link and Lightning Cash family of games.

Total segment revenue increased 47 percent to A$1 billion across its global segments, with Americas and, Australia / New Zealand segments delivering 90 percent of its earnings growth.

“We’ve grown significantly more than the market and we have taken competitors’ older products out,” said Aristocrat chief executive Jamie Odell, but cautioned that level of growth is unlikely to be replicated.

“Our focus on growing share and profitability by investing in compelling product portfolios, targeted to priority segments and supported by improving execution, is delivering tangible and sustained results, despite generally flat and highly competitive market conditions,” he said.

The chief executive says Aristocrat expects NPATA for the second half of the fiscal year to be “broadly in line with the first half, maintaining our established trajectory of full year profit growth, assuming stable trading conditions and applying prevailing exchange rates.”

Aristocrat increased its dividend by 25 per cent for the six-monthly period to 10 cents per share and said the result marked its 10th consecutive period of earnings growth.