Popular slot machine maker Aristocrat Leisure Ltd. released its annual financial statement for FY2013-14. The company announced a loss of AU$16.4 million for the twelve-month period ended September 30 after taxes were subtracted.
The manufacturer claimed that there were three main reasons for this loss. In the first place, AU$78 million were spent on the valuation of Japanese pachislot business. What is more, Aristocrat suffered a AU$43.4 million loss from the sale of its lottery business to gaming software company Playtech Plc back in September. AU$13.1 were spent on transaction and restructuring costs as the Australia-based manufacturer acquired Video Gaming Technologies Inc.
Aristocrat shared that without these expenses, the company would have done much better, reporting on an after-tax profit adding up to AU$118.1 million.
During this fiscal year, manufacturer’s turnover increased almost 7% to AU$870.3 million. By comparison, it posted the total amount of AU$813.8 million this time last year. Earnings before the subtraction of interest, taxation, depreciation, and amortisation grew by 11.5%, adding up to AU$209.8 million. The company’s EBITDA amounted to AU$188.1 back in September, 2013.
As Aristocrat announced, its operating cash flow grew by 61.7% and this was mainly ascribed to the increase in turnover as well as to “cash management initiatives”.
The company stated that it managed to maintain its leading position on Asian market.
Turnover from Class III machines – slot machines that are used in commercial casino industry, was announced to have dropped by 18.4% in Europe and Southeast Asia. A 26.6% decrease in profits was posted, too.
Jamie Odell, CEO and managing director of the Australian company, stated that these numbers were indicative of Aristocrat’s efforts to invest more money in its development and expansion. During the past twelve months, the slot machines manufacturer had to make certain significant decisions that imminently affected its budget.
Mr. Odell commented on the purchase of VGT shortly after the fiscal year ended as a “bold step forward”. He also pointed out that the sale of their lottery business was yet another factor to influence the final numbers. Aristocrat’s CEO also mentioned that the revaluation of the Japanese pachislot business’ carrying value was a necessary step, so as for any unneeded risks to be reduced to a minimum.
Mr. Odell shared that he expected improvement in the company’s market and financial performance in the new fiscal year. Yet, he appeared to be well-aware that decreased demand in important segments might cause certain difficulties.
Aristocrat’s managing director stated that the company will keep on focusing its attention on the improvement of its catalogue and the maintenance of its leading position on the market. What is more, the manufacturer will strive for better financial performance in FY2014-15.
