Aristocrat Leisure Ltd, slot machine maker and digital games provider, is expected to maintain the position of market-leader across key for-sale segments globally in 2019.
The chief executive, Trevor Croker, noted that in financial year 2018, due to fewer large land-based casino projects opening up, the international segment – including casino slot machines supplied in Macau and other Asia-Pacific markets – had some volatility in its financial performance.
According to him, “International Class III revenue and profit decreased 6 percent and 11 percent respectively to AUD 202 million [US$144.6 million] and AUD 100 million compared to the prior calendar year.”
Aristocrat Leisure has looked to expand its digital online business as a means of providing revenue and stable returns, in the previous years.
The social games market was one that the company wants to pursue via digital products.
Growth in 2018
The Aristocrat Group reported in November, a net profit after tax which increased by 9.6% and revenue increased by 44.7% from the previous year.
Revenue for fiscal 2018 reached nearly AUD 3.55 billion, compared to AUD 2.45 billion a year earlier.
The companies online games platforms Product Madness, Big Fish and Plarium had – as of year-end – recorded respectively 2 million, 3.6 million and 2.5 million daily active users.
The total digital portfolio bookings saw an increase of more than 245 percent to just over US $1 billion during 2018.
Profit grew by 172% due to acquisitions and the performance of the Cashman casino app, namely the Heart of Vegas. This growth was also due to the successful scaling of Lightning Link.
Margins from Digital Projects
The segment margins for social gaming were around 32.8% during the reporting period.
According to the CEO, “Around two-thirds of total group revenues now come from recurring sources. This compares to a decade ago, when only around 10 percent of group revenues were recurring in nature.
Neil Chatfield, the incoming CEO, has claimed that in order to maintain a good track record of high growth and profitability he will focus on continuity.