The financial results of slots maker Aristocrat saw the giant company’s year end net profits slide by 46.7 per cent.
The year to September 30 was a trying one for the company, it confessed yesterday, along with the rest of the industry that is heavily dependent upon the land-based industry.
The closing of casinos and other machine venues across the world during the pandemic, following by a gradual reopening mostly with reduced capacity, was the principal reason for an almost six per cent fall in revenue.
In the Americas revenue was down 31.4 per cent to US$934.7m, while Australasia dropped by 38.5 per cent to US$204.8m and on the international market revenues were down by 38.2 per cent to $92.2m.
On the other hand the digital gambling business for Aristocrat rose sharply by just over 31 per cent to $1.61bn.
EBITDA fell 31.8 per cent to AU$1.09bn (US$794.9m), but there were some positive factors, said the company. Its Class III Premium installed base in North America grew 5.9 per cent to 24,366 units while its Class II installed base grew 0.3 per cent to 25,302. It has also strengthened its position as the clear number two in the social casino sector globally.
But overall there was a significant reduction in outright sales volumes internationally through the impact of the pandemic.
In a statement, the company said that despite the pandemic, it had “accelerated our diversification over the past several years, as we have entered more adjacent markets, segments and game genres. We have driven scale in digital, adding a material B2C operational engine to the group and delivering further diversity to a revenue base that is now predominantly recurring rather than one-off in nature.”
The company now operates in 328 licensed jurisdictions in 84 countries and has 6,000 employees.