End of year trading results are all being released this month as companies prepare for their AGMs. In general most of the gaming manufacturers are international now and have highly diversified businesses across many gaming categories. While some markets, such as Australia, are flat other parts of their business are in growth phases. Even Australian casino businesses have diversified their property or product portfolios leading to positive outlooks and financial forecasts for 2019.
Below is an update on some of the major industry profit results:
Aristocrat – Trevor Croker reported “profit increased 34 per cent to $729.6m,” he said. “Seventeen per cent of the 34 per cent profit growth was delivered by the performance of existing businesses, 12 per cent came from digital acquisitions…”
“Pleasingly, this result was achieved against a backdrop of broadly flat land-based markets. Industry leading talent, game content, hardware and technology, coupled with effective in-market execution focused on our highest value, strategic opportunities were once again key contributors to our performance.
Scientific Games – Full-year revenue increased nine per cent, or USD$279.6m, year over year to USD$3,363.2 million. Barry Cottle, CEO and president of Scientific Games, said, “This is a very exciting time for Scientific Games. We’re focused on developing the best games and the most innovative platforms to deliver outstanding gaming experiences wherever and whenever players choose to play. We are building momentum and continuing to grow our business while at the same time operating more efficiently.
IGT – is expected to report its next earnings report before the NYSE market opens on March 14th. Analysts are predicting full-year sales estimates of USD $4.84billion, with $1.27billion for the current fiscal quarter
Crown Resorts – The company reports revenue of AUD$1.536m, down 1.2 per cent, with main floor revenue up 0.9 per cent at AUD$867.7m. John Alexander, chairman, reported that the Australian operations in the first half reflected mixed trading conditions and there was modest revenue growth in Melbourne, offset by continued soft performance in Perth. Wage increases at the casino pushed up labour costs in the six months to December, causing a 3% decline in normalised operating earnings.
The Star – Highlights include record earnings of $331m (EDITDA- $297m normalised) with slots group revenue up 6.4% and The Star Gold Coast up 10.6%. Table games revenue up 6.4% and 10.6% in Qld with VIP trends equivalent to last year. Domestic gaming was up 6.5% due to an increase in visitation (1.7%) and a reduction in operating costs.