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Australia – Aristocrat prepares to launch Flexiplay in Australia

Australian slot giant Aristocrat saw its revenue decrease by six per cent in its 2020 fiscal year to September 30 to approximately $4.1bn, with COVID impacts on the gaming business partly offset by strong growth in digital. It is planning to roll out Flexiplay, which allows players to voluntarily set time limits and quarantine winnings, in Australia.

Earnings before interest, tax, depreciation and amortisation (or EBITDA) fell around 32 per cent compared to the prior corresponding period (or PCP) to almost $1.1bn. In the Americas, in local currency, revenue decreased around 31 per cent and segment profit fell over 52 per cent to approximately $935mand over $356m respectively over the reporting period.

The company’s Class III premium gaming operations footprint expanded by 5.9 per cent to over 24,300 units at period end, driving further share growth despite market conditions. On a combined and adjusted basis, Aristocrat’s average gaming operations fee per day improved 1.1 per cent to over U$51, driven by portfolio strength and resilient demand. In ANZ, in constant currency, revenue decreased 38.5 per cent to $280.5m while segment profit decreased 72.5 per cent to $58.8m respectively, compared to the PCP. International Class III revenue and segment profit decreased around 38 per cent and 66 per cent respectively to $126m and $32m compared to the PCP, again reflecting the material impacts of COVID related shutdowns, social distancing restrictions and travel restrictions across Asia and EMEA.

Chairman Neil Chatfield said: “While the Group was on track to deliver growth in line with our plans pre-pandemic, financial results for the full year were materially impacted by COVID-related customer venue closures, and the implementation of social distancing measures that have been in place across our global Gaming business. This impact was partly offset by excellent growth in our Aristocrat Digital business, which was another tangible demonstration of the benefits of our long-term strategy to diversify our revenue base.

“At the product level, we embedded refreshed marketing guidelines into our global Gaming business, invested in a further trial of machine-based responsible gameplay features in Australia and developed more ‘myth busting’ materials to educate players. In Digital, we launched several important initiatives to inform and empower players, particularly with respect to our social casino themed mobile games. Inapp responsible gameplay resources and harmonized customer service processes were rolled out, while unified self-ban procedures were also put in place. These initiatives build on progress made in recent years, and we will continue to add to these over time.”

Trevor Croker, CEO and Managing Director of Aristocrat, added: “Aristocrat is proud of our track record of investing in the development and testing of machine-based
responsible gaming features, beginning with our ‘Bluegum’ EGM product which was first trialed in 2011. We continue to bring forward options that have the potential to help empower players and support our responsible game play commitments. A second generation of machine-based functionality that we call ‘Flexiplay’ was trialled in 2019, and has now been approved by regulators in Qld and NSW.

“Flexiplay allows players to voluntarily set time limits and quarantine winnings from being played down, via the timer and piggy bank functions. Flexiplay enabled games have been approved in NSW, ACT and QLD, and we are preparing to place the first of these games in market in the first quarter of this year. Our customers have been very supportive of Flexiplay. We look forward to learning more from the release of Flexiplay, and to applying the lessons to further product-based RG innovations in future,” he added.

“This is just one example, but it speaks to Aristocrat’s approach in this complex area. We seek to lead, we strive to work collaboratively with customers and other stakeholders, and we focus on bringing forward commercially viable options that enhance player empowerment and choice. We have plenty of work still to do both in responsible gameplay and across our Sustainability agenda, but we are absolutely committed to a path of continuous progress and expanding transparency.”