Online gambling

Aristocrat Revenue Grows 17.7% in FY22, But No Timeline for Online Gaming Profitability – Finance

Aristocrat reported a 17.7% year-over-year increase in revenue for the full year 2022 ended September 30.

Revenue was A$5.57 billion (£3.17 billion/€3.62 billion), an improvement from A$4.73 billion for the year 2021.

It had been a busy year for Aristocrat. In the first quarter, he agreed terms on a £2.7bn acquisition of Playtech. However, in February this year, Playtech shareholders failed to support the acquisition, causing the deal to fall through.

During the same month, Playtech was approached by TTB Partners for a possible takeover deal, while Aristocrat drew up plans to find another way to expand its presence in real-money online gambling.

Trevor Croker, CEO and Managing Director of Aristocrat, said the full year results were indicative of Aristocrat’s financial recovery from Covid-19.

“Aristocrat delivered an almost 18% year-over-year increase in revenue and annual profit of $1.1 billion that topped our fiscal 2019 performance by approximately 23%,” said Croker said. “This highlights the strength of our post-Covid recovery and our ability to perform in a challenging environment.”

He also said Aristocrat’s land results had “offset headwinds” in its Pixel United mobile social gaming business. In March this year, Aristocrat helped evacuate more than two-thirds of its employees from Russia-invaded Ukraine, where part of Pixel United is based.

Aristocrat Online Game Plans

Additionally, Croker provided an update on Aristocrat’s “build and buy” strategy, in which it pledged to pursue online opportunities and build on the launch of its cash gaming division. real, Anaxi.

“We have made further progress in our build and buy strategy to evolve into RMG online, with the launch of our new business, Anaxi,” he continued. “While we focus first on the North American igaming vertical, we ultimately aim to be the leading gaming platform within the global online RMG industry.”

But when asked when Aristocrat could expect Anaxi to break even, Croker pointed out that Anaxi was a mid-term investment with no specific timeline.

“This is a medium-term investment; it’s about entering a segment,” he said. “We have continued to invest in D&D [design and development]which has been confirmed within D&D’s 12% investment, and we will continue to invest and stay within our target range.

“But this is a medium-term growth opportunity for our organization.”

Income distribution

Nearly half of the revenue came from the Pixel United segment, which brought in $2.59 billion. This was 5.0% more than in 2021.

In the land segment, the Americas generated $2.42 billion, up 32.2%, while Australia and New Zealand recorded $460.7 million in revenue. Class III international games accounted for the remaining $106.8 million.

Cost of revenue was $2.49 billion, $217.7 million higher than 2021. This left gross profit at $3.07 billion, up 25.1%.

Other income of $26.0 million slightly offsets these costs. However, selling, general and administrative expenses were $955.4 million, $89.4 million higher than 2021, while design and development expenses were $666. $5 million, an increase of $139.2 million. Financial expense also increased, from $117.0 million to $254.8 million.

After taking these costs into account, pre-tax profit was $1.22 billion, up 31.3%.

Income tax expenses more than doubled, increasing by 142.1%. Following this, the overall profit for the year was $948.5 million, an increase of 15.6%.