Aristocrat surges on upbeat 1H forecast

Significant market share and profit growth in core markets, including digital social gaming, have boosted Aristocrat's first-half performance.

Shares in Aristocrat Leisure have surged more than 10 per cent after the company upgraded its half-year and full-year profit guidance.

The gambling machine supplier and social gaming company expects to report a net profit after tax and amortisation (NPATA) of acquired intangibles of about $183 million for the six months to March 31.

"This result is well ahead of market expectations, and represents an increase of approximately 66 per cent on the normalised NPATA reported in the prior corresponding period," Aristocrat said on Thursday.

"NPATA over the second half of the 2016 fiscal year is expected to be broadly in line with the first half, maintaining our established trajectory of full-year profit growth."

Aristocrat anticipates moderate growth in key North American markets and further growth in its digital gaming business in the second half.

Aristocrat said its strong first-half performance was driven by significant market share and profit growth in core markets, including the digital social gaming segment.

Aristocrat chief executive Jamie Odell described the company's first-half result as outstanding.

"Our focus on growing share and profitability by investing in compelling product portfolios, targeted to priority segments and supported by improving execution, is delivering tangible and sustained results despite generally flat and highly competitive market conditions," he said.

Shares in Aristocrat, which will report its first-half figures on May 26, were $1.41, or 13.44 per cent, higher at $11.90 at 1106 AEST.

Aristocrat shares have risen steadily over the past 12 months. A year ago, they were around $8.09.


Share

2 min read

Published

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world