Aristocrat targets US growth to halt revenue slide
Games provider readying US online poker push after 7.5% revenue drop in half-year results
Aristocrat said expansion into the US online gambling market is a cause for optimism following an AU$31.1m year-on-year decrease in revenues for the six months ended 31 March 2013.
The gaming solutions provider attributed the 7.5% drop to a lower than usual number of scheduled games releases in the Japanese and rest of world markets, where revenue was down 27.7% year-on-year from $132.3 in H1 2012 to $95.7m.
However the company argued it is “extremely well positioned to take advantage of the anticipated opening of online wagering in the US”. Earlier this month, Aristocrat received its online poker licence in Nevada after signing a deal to integrate the Amaya-owned Ongame poker software into its online gaming platform.
The memorandum of understanding enables the gaming supplier to offer the Ongame product via its freeplay nLive platform, with a real-money version to be provided where US regulation permits.
Lottery and online revenues in the Japanese and rest of the world markets also experienced decline, falling 21.4% from the comparable period in 2012. EBITDA for the period remained flat at $95.4m, while its closing net debt decreased to $185.1m compared to $240.7m in the corresponding period last year.
Aristocrat also saw significant growth of 34.5% year-on-year in Europe, although the exact revenues were not disclosed. However its European slot offering was also expanded this month with a distribution deal agreed with NYX Gaming Group.
The period also saw the company acquire social casino operator Product Madness, with the results showing Aristocrat paid $10.675m in cash for the business.