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Aristocrat consolidates during tough times
Published:  25 September, 2009

Aristocrat Leisure is to withdraw from many world markets and focus its efforts on the U.S., Japan and Australia.

The Australian game supplier's CEO and MD Jamie Odell said: "We will home in on the few gamechanging opportunities that will make us successful."

He added: "We expect to exit around 30 low-margin jurisdictions over the coming months. One size no longer fits all."

In the U.S., Aristocrat's priority is to double its share of the participation gaming market over the next half-decade, as well as developing its systems and stepper businesses.

It will locate more senior management in North America in an effort to become "more genuinely embedded in the region", according to Odell, and ramp up U.S.-specific game development.

Increased local game development is also on the agenda for Australia, along with "a more customer-focused sales model", while in Japan Aristocrat is hoping to stabilise its fortunes by aiming for a minimum of two licensed game releases and 50,000 unit sales each year.

The firm's financial results for the first half of 2009 reflected tough economic times in each of its major markets, although Aristocrat believes that new game releases in the second half will help it recover.

Total revenue from ordinary activities was down about five percent on the same period in 2008, to AUD374m ($310m), but pre-tax earnings sank 32 percent to AUD58m ($48m).

Said Odell: "Operators continue to be cautious in terms of capital spending and new venue openings slowed markedly."

One exception to the recessionary rule for Aristocrat was New Zealand, where the company's revenue roughly doubled and profit trebled.







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