Australian gaming machine provider, Aristocrat Leisure, has projected a deficit of AUD 15 million (USD 11 million) for the initial six months of its 2021 financial year, concluding December 31, 2020. This estimate arises as the COVID-19 outbreak continues to influence the land-based gaming sector.
During its Annual General Meeting (AGM), the firm indicated that the demanding market circumstances encountered in the latter part of 2020 are anticipated to endure into the first half of 2021. This predicted pre-tax shortfall of AUD 15 million (excluding the effects of exchange rate variations and non-recurring expenses) corresponds with the company’s outlook following the consequences observed during the September quarter.
Nevertheless, Aristocrat anticipates enhanced results for the complete 2021 fiscal year. This optimism stems from the present state of affairs in North America, a significant market. Conversely, the extensive COVID-19 infections in Latin America are projected to impact trading through the remainder of 2020.
Chief Executive Officer Lawrence Levy conveyed his conviction that fiscal year 2021 will consist of two distinct periods. The initial phase will prioritize safety and precaution during the resumption phase, while the latter half will center on resurgence and expansion as the sector adapts to a “new standard.”
Levy highlighted Aristocrat’s advantageous position for recuperation, referencing its sound standing, robust financial health, and continuous dedication to advancement. He posits that these elements will prove beneficial as customer locations reopen and capital investments rise within the sector.
AGT experienced a challenging fiscal period concluding on June 30, 2020, recording a substantial deficit of $43.4 million (AUD). This outcome stood in stark opposition to the $10.9 million gain they had achieved in the preceding year. This decline was primarily ascribed to a 36% reduction in their annual earnings, which tumbled to $149.4 million.