Australian Poker Machine developer Aristocrat Leisure impresses G2E, surges on ASX
Since its very first poker machine creation in 1953, Aristocrat Leisure Limited has been a staple of the Australian gambling market. The company has pioneered the industry throughout the region, helping to mold the evolution of poker machines year after year. Last week’s finalization of the VGT acquisition has catapulted Aristocrat’s value on the market, while the company was all the rage at the Global Gaming Expo (G2E) held earlier this month in Las Vegas, Nevada, USA.
According to a press release issued on Wednesday, “Readers of GGB News say Aristocrat had the most impressive array of products at G2E 2014.” Although the tradeshow floor was overflowing with creations from manufacturers of gambling products worldwide, an online poll offered to visitors of the expo revealed that 43% found the new pokies of Aristocrat Leisure to be, by far, the most impressive of the lot. To put it into perspective, the nearest competitors grabbed only 11% and 9% of the vote, respectively.
Aristocrat Leisure introduced upwards of 200 brand new titles at the Global Gaming Expo, including additions to its popular C*Series, E*Series and J*Series line-ups. Those that gained the most interest from the crowd were the Britney Spears Slot Game, exposing the brand’s trademark Arc™ cabinet design, Buffalo Stampede, encased in the massive Behemoth™ cabinet, Sons of Anarchy, depicting the VerveHD™ cabinetry, and Ted™, swathed in the brand’s Wonder Wheel™ cabinet.
With such a fantastic showing at the annual Las Vegas expo that foreshadows the most popular poker machines of the coming year, it’s no surprise that the pokies giant is doing so well on the Australian Stock Exchange. The company first appeared on the ASX more than 40 years into its operation in 1996, climbing 34% in the last fiscal year. Coded ‘ALL’ on the exchange, the poker machine manufacturer is at its highest point in over 5 years, currently valued at 6.67.
A major contributor to Aristocrat’s surge in value is the recent acquisition of Video Gaming Technologies, Inc. (VGT). On Tuesday, October 21, the company announced the completion of the buyout, following reception of “all necessary regulatory and other approvals”. With the North American based VGT now under its proverbial wing, Aristocrat’s global reach has expanded profoundly.
CEO and Managing Director of Aristocrat Leisure Limited, Jamie Odell said “this is a strategically and financially compelling opportunity for both businesses. VGT brings a complementary product offering to Aristocrat and will immediately step change our scale, and significantly accelerate our growth, in the critical US recurring revenue segment.
“The addition of VGT comes at an ideal time for Aristocrat,” Mr. Odell continued, “and will build on the sustained operational momentum we have achieved in our core Class III business, particularly in key US for sale and recurring revenue segments.”
Odell went on to explain the acquisition as being “highly cash flow generative.” The company is convinced that it will be able to maintain the current level of growth through its newfound reach into North America and is already contemplating additional investments in “digital and other organic and inorganic” poker machine markets.