Australian pokie machine manufacturer, Aristocrat Leisure, has seen its profits increase by 66.8 percent in the last 12 months thanks, in part, to the acquisition of Video Gaming Technologies (VGT).
The Sydney-based company, which controls a network of pokie machines in casinos across Australia and parts of the US, saw its full year profits hit $110.1 million which is more than double the company’s profit in 2014.
Record Pokie Machine Profits
Complimenting this upturn in fortunes was a positive report for the first-half of the 2015 financial year.
According to the stats, Aristocrat Leisure saw its net profit for the six months up to March 31 rise from $57.4 million to $77.6 million.
This 35.2 percent increase is being attributed to the acquisition of VGT and the movement into the US market.
Prior to Aristocrat Leisure’s takeover of VGT, the company had a strong foothold in the US, particularly with Native American Casinos, and this has allowed the Australian company to make impressive profits in the first half of the financial year.
Unlike pokie machines in Australia which are controlled by random number generators, the company’s new US machines offer an electronic bingo style game.
This format is hugely popular in Native American casinos and because Aristocrat Leisure takes a cut of the profits from all VGT owned games, it’s given the company a healthy revenue boost.
Continued Improvements in 2016
In line with this upwardly trend in the opening half of 2015’s financial year, the company expects much of the same for the rest of the year.
As well as a growing presence in the US, strategic sales in Asia, including Macau, should help the Aussie company make more money and improve on its record breaking 2014 haul.
“This result will be driven by improved operational performance across key markets and segments, constrained by a smaller US outright sales market, continued low churn in Asia and higher D&D investment as we position for further growth in 2016,” said Aristocrat Leisure’s CEO, Jamie Odell.
With profits now at an all-time high, Odell also explained that the company will be reinvesting most of that cash and augmenting its overall product.
Free-to-play social casino apps are one are which Odell is keen to explore.
Following the purchase of Product Madness, a social gaming company, back in 2012, Aristocrat is now looking to invest in more of the same companies.
Heat of Vegas has already proved to be a money-spinner for the company as more people turn to social gaming apps as a way to enjoy casino style games.
Although the games are free to play in isolation, the presence of in-app purchases make them highly lucrative and it’s this market Aristocrat will be looking to exploit in the second half of 2015.