Australian gaming and gambling machine maker Aristocrat Leisure (ASX:ALL) has reported a 35.2 per cent increase in first-half profits on Tuesday. On a non-constant currency basis for the 6 months up to 31 March 2015, the company posted a net profit after tax (NPAT) of $77.6m, compared to the $57.4m from the previous corresponding period. Earnings per share (EPS) on the period came to 17.3c per share, compared to the previous 11.9c per share.
Revenue for the period came to $685m, which was a 73.5 per cent increase compared to the previous $394.7m revenue. The company cited sustained performance in its North American Gaming Operations across both Class III and Class II with the acquisition of Video Gaming Technologies Inc, which was completed on 20 October 2014. The reported also noted that the Australian outright sales market and strength in the performance of the digital market boosted underlying revenue. Normalised operating cash flow was up 91.4 per cent to $131.5m.
Aristocrat said it invested significantly into new talent and technologies through its increased revenue. During its last report, it underlined the importance of using a technological edge to focus on key recurring segments and important outright sales markets. The company also discontinued underperforming operations relating to its lotteries business, which was sold in September 2014. Last month, Aristocrat announced it would discontinue its Japanese Pachislot business to further divest struggling assets. Shares of ALL are up 52c, or 6.61 per cent, at $8.39 per share around 2:31pm on Tuesday. ALL has advanced 62.91 per cent in the last 12 months and 27.90 per cent so far this year.
Author: Matthew Dibb
May 26, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.