The Australian gaming powerhouse, Aristocrat Leisure, experienced a significant decline in earnings during the 2020 financial year. Net income, excluding amortization but before taxes, plunged by 47%, reaching AUD$476.6 million (roughly US$348.8 million) for the year concluding on September 30, 2020.
This decrease was driven by a 6% reduction in total revenue, amounting to AUD$41.4 billion over the preceding 12 months ending September 30, 2020. Earnings before interest, taxes, depreciation, and amortization also suffered a substantial blow, contracting by 32% to AUD$10.9 billion.
Nevertheless, Aristocrat witnessed some positive developments. Their online segment thrived, now representing a considerable 57% of their overall revenue. The Americas have also become a crucial market, contributing 33% of the company’s total revenue.
As of September 30th, Aristocrat possesses licenses in an impressive 328 jurisdictions spanning 84 nations, highlighting its global presence. The company employs over 6,000 individuals, with the majority situated in the United States.
Despite the obstacles presented by the COVID-19 pandemic, Aristocrat maintains an optimistic outlook. While acknowledging the “substantial effects” of venue shutdowns, capacity limitations, and physical distancing protocols on its land-based operations since March, the company asserts that it has exhibited “robust operational momentum.”
Moving forward, Aristocrat conveys confidence in its capacity to “sustain a long-term path of superior, enduring growth.” This assurance originates from the company’s solid financial standing, marked by ample liquidity, manageable debt levels, and a sound balance sheet.