Aristocrat Leisure (ASX:ALL) reported 78.9% higher NPATA (Net Profit After Tax and before Amortisation of acquired assets) and 88.6% higher revenues in its FY 15 results released to ASX today.
The gaming and technology company reported that its total segment revenue increased 64.7% in constant currency and 88.6% increase in reported terms. The company’s EBITDA increased over 138% compared to pcp.
According to the company, the performance was driven by the successful acquisition and integration of the VGT Class ll gaming operations business followed by sustained improvement in operational performance. The company reported that its digital revenues and segment profit increased almost three-fold compared to the previous year. This was due to its ‘Heart of Vegas’ application on iOS and Android phones.
The company also reported that its statutory results were driven by one-off factors during the reported period, such as the successful completion of the VGT acquisition, the sale of its Japan business, impairment of legacy inventory etc.
According to the company’s CEO and Managing Director, Jamie Odell: “Over the course of the year, the business continued to focus on the things within our control, namely broadening and deepening of our core portfolio, improving front-end effectiveness, investing in outstanding talent and entrenching a high performance culture.”
Aristocrat confirmed its FY16 outlook as it anticipates further growth in daily activity user numbers and monetisation. The group’s average revenue per daily active user and margins will moderate over FY16 as it achieves economies of scale and grows into new channels. Aristocrat expects its Americas Class lll premium gaming operations to grow further but forecasts that the sales in the ANZ sector will be flat, with stable margins. The group’s effective tax rate is expected remain above 30%, reflecting the impact of a higher portion of US earnings.
The stock ALL jumped 2% on the opening at 10:10 AM (AEDT) as investors were pleased with the announcement.
Author: Imran Valibhoy
Nov 25, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.