Thursday 25. February, 2016

Aristocrat Leisure Reports Outstanding Results for 2015

Ian Blackburn, chairman of Australian gaming machine manufacturer, Aristocrat Leisure Ltd, reported on the continuing success of the company’s acquisition of Video Gaming Technologies Inc (VGT) in his address at the annual general meeting (AGM) held on Wednesday, February 24, 2016. He announced that the acquisition and the integration of VGT was fundamental to the company’s positive financial performance in 2015.

“In every respect, from strategic fit to operational impact and cultural alignment, the VGT acquisition is delivering fully against our expectations and the board is delighted with the progress and momentum achieved to date,” Mr Blackburn announced.

The Sydney-based Aristocrat acquired the US-based VGT in July 2014 for US$1.28 billion. As a provider of gaming machines for the North American tribal gaming market, VGT provided Aristocrat with a footprint in the US and specifically in the tribal gaming market.

In November 2015, when Aristocrat reported their preliminary financial results for 2015, they said that strong sales in North America and Australia had contributed to an 88.6 percent hike in revenue compared to the same period the previous year, to AU$1.6 billion.

“I would particularly highlight the contribution VGT made to lifting both operating cash flow and recurring revenue at the group level,” Blackburn said.

“Aristocrat’s leverage ratio improved from 3.6 times pro forma at the announcement of the VGT acquisition to 2.6 times at period end, comfortably within our expectations, and debt continues to be paid down.”

CEO of Aristocrat, Jamie Odell reported positive performance across all segments with their Australian and New Zealand businesses delivering “outstanding results” and their new casino openings in Macau “achieving market-leading share”. The company expects further growth with their Class III premium gaming operations.


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