Aristocrat Leisure sees drop in profits for FY but digital bet helping offset revenue loss

Australian slot machine manufacturer and digital casino games provider Aristocrat Leisure Limited has reported a 38 per cent year-on-year drop in revenues from its international market – which includes Macau – during the financial year ended September 30 to some A$126.3 million (MOP738.3 million/US$92.4 million), with segment profit down 66 per cent to some A$32.3 million.

The company’s revenue and profit for the Americas also dropped by 31.4 per cent year-on-year to some US$934.7 million (MOP5.4 billion) driven by COVID-19 customer venue closures and social distancing measures since March 2020, while the Australia and New Zealand market saw a 38.5 per cent drop to A$280.5 million.

Overall Aristocrat has reported a 46.7 per cent decline in normalized net profit after tax in the period under review, reporting some A$476.6 million.

However, the group pointed out that its diversification strategy has proven effective, with a 29 per cent rise in Aristocrat Digital revenue ‘largely mitigating’ a 32 per cent drop in its gaming segment, with the group maintaining strong operating cash flows over A$1 billion.

The Australian based group has been expanding its online-delivered products as a way to counter the impact of a near-worldwide pause in land-based casino operations due to the coronavirus pandemic, with the company reporting some US$1.6 billion in revenue and US$494 million in profits from this segment.