Aristocrat’s Digital Revenue Skyrockets in 2018Tisha Walden | 04 Dec 2018
The full extent of the incredibly rapid digital expansion Aristocrat is enjoying was revealed on the 29th of November. The company saw a revenue increase of almost AUS$1 billion, along with strong growth in the North American Market. The supplier saw a turnover boost of 47.7% for the 2018 financial year.
Overall sales rose to AU$3.625 billion for the 12-month period ending on September the 30th, which shows a digital revenue surge of 250%. Division profits rose from AU$158.9 in 2017 to AU$438 in 2018.
Results Enhanced by Acquisitions
The company stated that the strong results were crucially enhanced by the addition of Big Fish Games and Plarium in October of 2017 and January this year respectively. They also made mention of the solid performances by Heart of Vegas and Cashman Casino, augmented by the commencement of Lightning Link and FaFaFa Gold during the financial year. The organisation’s number of daily active digital users has hot up almost almost 5 times over, reaching AU$8.1 million.
Expansion Into the US Market
In the meantime, the Americas segment, made of Argentina, Canada, Mexico, and North America, now constitutes a full 44.7% of the total sales for Aristocrat. This is in comparison to the 12.5% represented by their home base, Australia and New Zealand.
A rise in revenue of 13.7% for the Americas to AU%1.620 billion gave rise to an increase of 16.7% in segment profit, to AU$859.2 million. Aristocrat stated that a North American expansion of 25% of its Class III Premium Gaming operations was the result of a focus on expanding their product portfolios. This is in contrast to their International Class III segment, which dropped by 2% in earnings, down to AU%210.5 million.
More Growth Expected in 2019
The company is anticipating further increases in its digital sector in the 2019 financial year. This is supported by new games being released, and a notable increase of around AU$100 million into investments aimed at user acquisition. Their earnings are predicted to be weighted towards the 2nd half of the 2019 fiscal year, due to the timing for both these strategies.
Trevor Croker, the Chief Executive Officer and Managing Director for Aristocrat, said that these increases highlight the progress the company is making. He spoke of delivering cash flow growth and sustainable earnings over time, which was in line with the master plan they were following, and decidedly in the shareholders’ best interest.