Aristocrat Entertainment witnessed a substantial revenue surge in the six months concluding on March 31st, hitting an impressive A$1 billion (roughly £490 million). This constitutes a remarkable 47% climb compared to the corresponding period the previous year.
The gaming enterprise declared a net profit post-tax and pre-amortisation of acquired intangibles (NPATA) of A$183.2 million, a 66% leap year-over-year. Their earnings before interest, tax, depreciation, and amortisation (EBITDA) also demonstrated remarkable expansion, soaring by 53% to achieve A$372.4 million.
This triumph can be linked to various elements, including expansion in their primary North American and Australian sectors, elevated average sale prices, and greater average revenue per customer. Their online social gaming division also played a crucial part, undergoing a surge in daily active players and yielding robust revenue growth.
Aristocrat Entertainment also successfully decreased their net debt from A$1.48 billion to A$1.23 billion, lowering their net debt to EBITDA ratio from 2.9 times to a more favorable 1.9 times.
Despite encountering exceptional expansion in the Australian direct sales sector, the firm still derives a considerable 50% of its revenue from recurring streams.
Chief Executive Jamie Odell conveyed his contentment with the company’s results, remarking, “Aristocrat produced an outstanding outcome in the initial half of the 2016 fiscal year, signifying our tenth successive quarter of profit escalation.”
Looking forward, Aristocrat Entertainment projects their NPATA for the latter half of the 2016 fiscal year to be generally consistent with the first half.
The market responded favorably to the announcement, with Aristocrat Entertainment’s stock value on the Australian Securities Exchange experiencing a minor uptick from A$12.43 to A$12.45 on Thursday.