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Tuesday 11

December, 2018 4:20 PM



Aristocrat's 10% profit lift misses wagers

Aristocrat's 10% profit lift misses wagers

Shares in global gaming provider Aristocrat Leisure have dropped despite a 9.6 per cent lift in profit to $542.6 million, with analysts expecting more.

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By AAP 29.11.2018 12:05 PM

A more than two-fold jump in digital gambling revenue has helped global gaming company Aristocrat Leisure lift full-year profit 10 per cent to $542.6 million.

But the company's shares dipped nearly six per cent in morning trade, with growth falling short of market expectations.

The Australia-based company says global revenue for the year to September 30 rose rose 30.9 per cent to $3.55 billion, with digital revenue growing 245 per cent to $1.34 billion following the acquisition of Israel's Plarium and US company Big Fish in 2018.

Aristocrat lifted its final dividend to a fully franked 27 cents, from 20 cents a year ago.

Aristocrat shares dipped as much as 5.8 per cent on Thursday, and were down 4.9 per cent to $24.82 at 1140 AEDT, from an all-time high of $32.98 in July.

The company said on Thursday it expects further growth in its US businesses in 2019 despite relatively flat markets and increasing competitive pressures.

"The result was driven by strong organic growth ... driven by an increasingly broad and competitive product portfolio together with effective execution and a focus on customers and innovation," Aristocrat chief executive Trevor Croker said.

Total daily active users on Aristorcat's digital business increased almost five-fold to 8.1 million.

Digital now represents 27 per cent of Aristocrat's profit.

ARISTOCRAT POCKETS PROFIT LIFT, BUT MISSES EXPECTATIONS

* Net profit up 9.6pct to $542.6m

* Revenue up 30.9pct to $3.55b

* Final dividend up 7 cents to 27 cents, fully franked.

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