Aristocrat’s chief executive officer, Trevor Croker, has addressed the company’s recent performance, expressing optimism in its ability to digitalize its traditional casino games.

In his address during the annual general meeting, Croker commented on Aristocrat’s FY results, praising the company’s growth. He pointed out that FY23 saw the company deliver revenue of $6.3 billion and an EBITDA margin of 33.4%.

Net profit before amortization stood at $1.3 billion, representing a profit improvement of 21%. The iGaming segment skyrocketed, reporting revenue and profit growth of 22% and 23% respectively. International Class III products, on the other hand, posted revenue growth of a whopping 87%, underpinned by strong performance in EMEA and Asia.

The company’s NA presence increased, placing Aristocrat’s growth well ahead of that of its competitors.

We once again generated robust operating cash flow, which was applied to fund our growth initiatives, including capital investments in our installed base in North America and the strategic acquisition of Roxor Gaming.

Trevor Croker, CEO & MD, Aristocrat

The Roxor acquisition closed in January 2023, allowing Aristocrat to grow its European iGaming footprint. Following that, Aristocrat also moved in to acquire NeoGames in a deal that it is yet to complete.

The Largest Growth Opportunity Lies in the RMG Sector

As for the future, Croker is optimistic about Aristocrat’s business in North America. The company recently forayed into Quebec’s VLT market. The company is also set to launch VLTs in Georgia in 2024.                                               

The company also plans to continue its investments in D&D as it seeks to differentiate itself from its rivals. Croker cited the recent launch of NFL-themed electronic gaming machines as a perfect example of this.

However, the largest growth opportunity lies in the RMG sector, Croker believes. He said that the performance of its first releases quickly proved that Aristocrat’s land-based casino games would resonate online.

We will take our successful gaming portfolio online through a multi-year roll out plan, ensuring a steady stream of new game launches, both in North America and in Europe, where our acquisition of Roxor has established a foothold from which we can further expand penetration of our leading content.

Trevor Croker, CEO & MD, Aristocrat

In the meantime, Aristocrat reaffirmed its commitment to sustainability and ESG, saying that they are a fundamental expression of the company’s values. Croker added that his team is genuinely concerned about the dangers of excessive gambling and will continue to involve itself in responsible gaming initiatives.

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The UK-headquartered, leading betting and gaming company that acquired William Hill’s non-US business in 2022, 888 Holdings Plc, has published its post-close trading figures. 

The report indicates an 8% decrease in the group’s annual revenue for the full year 2023, emphasizing important drops in the UK online and global markets.

The fourth quarter’s revenue reached £424 million ($538 million), a number that marked a 7% decrease compared to £457 million ($579 million) in the same quarter in 2022.

The Q4 revenue was also 5% higher compared to Q3 2023, with activities up 5% on a YoY basis. In the context of the continuous growth in the customer base, 888 believes it has what it takes to set the “foundation for sustainable future revenue growth.”

Full Year 2023 Revenue Down Because of a Mix of Factors

As explained in the same update, the group’s FY23 revenue of £1,711 million ($2,170 million) down 8% compared to 2022 was the result of a number of factors including the shift away from dotcom markets, which dropped revenue by around £80 million ($101 million) during FY23. 

The customer mix changes recorded in the UK resulting from the additional measures to ensure safe gambling and 888’s marketing changes with a bigger focus on profitability and sustainable revenue have all triggered “a higher quality and more sustainable business mix.”

This featured roughly 95% of FY23 revenue generated from taxed and regulated markets. 888 recorded an 11% increase in the average number of monthly active users in the UK online segment. However, the figure did not suffice to fight off the 18% drop in average revenue per customer.

The FY23 retail revenue went up 3% at £535 million ($678 million) compared to FY22 at £519 million ($658 million). The main triggers were the improvements brought to the product offerings, including the introduction of self-service betting terminals and gaming cabinets.

Outlook for 2024

The company has also expressed a “positive outlook for FY24 revenue with consistent growth in active players driving confidence in strong revenue growth online in both the UK and International segments.”

The group’s compliance and implementation of safer gambling practices are expected to “annualize in February 2024,” which would lead to a more positive outlook in terms of average revenue per user. 

888’s profitability, in the long run, will also be positively impacted by the new cost savings program of around £30 million ($38 million) initiated at the end of last year and the additional investments in a greater strengthening of the group’s core capabilities in intelligent automation and artificial intelligence-powered data and insights.

While these measures are expected to boost the group’s profitability in the long term, the additional investments that are underway are also leading 888 to project the 2024 Adjusted EBITDA to be “at the low end of consensus range.”

Chief executive officer Per Widerström commented on the “important strategic and operational progress in the face of some significant regulatory and compliance headwinds” in FY23 while happily announcing the enhancement of the foundations for sustainable and profitable growth.

The CEO also announced that he would outline the group’s 2024-2026 plan together with the full-year results toward the end of March.

Last week, the group announced job cuts in Israel amid its global restructuring plans.

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The Malta Gaming Authority (MGA) has released its 2022 Annual Report and Financial Statements. The move and similar moves by government entities are widely seen as efforts to provide clarity of mission and transparency of operations.

In that light, Malta has been mostly successful throughout the years, at least in as far as the information provided is somewhat useful to potential license holders and consumers. However, the type of information and the depth to which activities are reported can leave a lot to be desired.

5,280 players requested assistance

While the number of player complaints is reported, the type and severity of potential violations are not reported in context nor are the results of any decisions related to specific disputes. Further, alternate dispute resolution is mandatory so it is assumed that only complaints that fail arbitration and that ADR service providers consider worthy to escalate are ever considered by the gaming authority.

As well, plans to change the law or even bills introduced to mdo so are rarely ever reported either on the website news section or in the periodic or annual reports until policy or law has changed such as when operators may have been aware of a comment period but players had no clue that the minimum theoretical return to player percentage (RTP) for MGA-regulated online slots would drop from 92% to 85%, ostensibly to bring it “into line” with the land-based sector.

More recently we had to learn from news outlets that follow such disputes that a bill had been introduced to the legislature which would modify the gambling act yet apply to all other European Union trade disputes absolving any Malta-registered company from responsibility to conform to EU trade law by escaping enforcement of judgments when a Maltese licensed online casino is sanctioned or fined by another EU member state.

While the previously mentioned and other information may be available in official government gazettes or press releases, in the spirit of transparency and consumer confidence it should at a minimum be linked to from the MGA website if not included in periodic and annual reports.

The topline numbers and a link to the financials and report can be found here (here).

A brief summary follows:

• 5,280 players requested assistance
• 28 compliance audits were conducted and 228 desktop reviews
• 25 licensees were subject to remediation and/or administrative measures
• 6 individuals and companies were deemed by the Fit & Proper Committee to not be up to the Authority’s probity standards due to various factors
• 41 gaming license applications were received during 2022. Thirty-one (31) licenses were issued
• 1,500+ criminal probity screening checks were undertaken
• 48 interviews with prospective Money Laundering Reporting Officers (MLRO) and key persons carrying out the AML/CFT function
• 9 Letters of Breach were issued following breaches of the Commercial Communications Regulations
• 85 responsible gaming-themed website checks were performed with 38 URLs found to have misleading information

In publishing the report, MGA CEO, Dr Carl Brincat said: “This report is testament to our collective efforts in promoting a fair and sustainable gaming ecosystem. Through proactive measures and leaner regulation processes, we strive to ensure a level playing field that nurtures innovation while safeguarding against any potential risks.

“As the global gaming landscape evolves, our role becomes even more critical. We embrace this responsibility with utmost determination, working tirelessly to stay ahead of emerging trends, technologies, and challenges. We remain steadfast in our pursuit of robust frameworks that inspire confidence, protect vulnerable individuals and render Malta the home for gaming operators of goodwill.”

Source: The MGA publishes its 2022 Annual Report and Financial Statements, Malta Gaming Authority News, June 2, 2023

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