Covid hits Aristocrat’s gaming profits, but digital shines

The Covid-19 pandemic hit sales and profits of Australia’s largest gaming machine manufacturer, Aristocrat Leisure during the 2020 financial year.

The Sydney company saw revenue from physical gaming venues drop by a third as the pandemic halted some operations, while its digital gaming sales rose by 29 per cent.

However Aristocrat Digital, which has been a diversification focus for the company for some years, did not stop its’ operating revenue falling by 5.9 per cent to $4.1 billion.

Digital sales represented 57 per cent of the company’s revenues in 2020, driven by its Product Madness and RAID: Shadow Legends portfolios (pictured).

The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.09 billion, down 31.8 per cent on the previous corresponding period.

Aristocrat told investors that the company has been materially impacted by the pandemic, which also saw social distancing introduced into venues.

“At the same time our performance for the period demonstrates the group’s deep strengths, including our robust financial fundamentals and the soundness of our long-term strategy.

“The benefits of (our) diversification are evident in our results for the period, during which we achieved group revenue in excess of $4 billion, while protecting the business and maintaining investment behind our strategic differentiators for the future.”

After failing to strike an interim dividend for the first six months for the year, Aristocrat set a final dividend of 10 cents a share.

“Demand began to return through the latter half of the reporting period.”

Picture: Aristocrat Leisure/RAID: Shadow Legends

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