Aristocrat Weathers Declining Casino RevenuesTisha Walden | 20 Nov 2020
As land based casinos around the world suffered an abysmal 2020, due largely to the world health crisis, one company has managed to mostly weather the storm. Aristocrat Leisure, a group largely known for its land based operations, did indeed see declines over the course of the year. However, the reduction in revenue was not as bad as anticipated. The saving factor was, without question, the company’s digital division.
Overall, Aristocrat Leisure has so far seen a drop of around 5.9% in revenue, to a grand total of AUD$4.14 billion. These are surely numbers that would have been alarming in other circumstances, but stand as a triumph given the turbulent nature of 2020. At least according to chief executive managing director Trevor Croker.
Croker put the matter into perspective in a statement. He pointed directly at the Aristocrat Digital arm of the corporation, explaining that the influx of business had been nothing short of a saving grace.
Indeed, online revenues for the company climbed by a remarkable 31.9%, bringing in a record breaking $2.36 billion. These numbers take into account the 12 months ending on September 30th.
Interestingly, this will mark the first time in the casino organisation’s history that online revenue has surpassed other channels, painting an interesting picture for the future.
Croker elaborated by saying that an aggressive, dynamic strategy had been used to gather new online users, which had ultimately resulted in positive overall results. He mentioned also that major strides had also been made in the effectiveness of the digital arm, helping to keep initial momentum going over the course of the year.
Regardless of the reasons, the corporation is no doubt pleased to have offset the devastating impact felt in the land based casino sector.
Taking a closer look at the damage, it can be seen that Aristocrat Leisure suffered nothing short of a revenue massacre in its usually lucrative areas.
The United States previously topped the charts, but in 2020 plummeted a staggering 29.8% to a total of $1.37 billion. New Zealand and Australia were equally as impacted, falling even further, 39.5%, to a bottom line of $280.6 million. Other international income fell 35.7% to $131.4 million.
In regards to these declines, Croker shared a few mote thoughts. He stressed that the difficult year, although certainly challenging, had left the casino corporation in a better place than it had ever been.
He concluded simply by stating that, once the world had begun to return to normal, Aristocrat Leisure would be better prepared than ever, and be more than ready to return to former glory.