Aristocrat drives record global poker machine performance index

by Charlotte Lee Last Updated
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Poker machine manufacturers have driven strong stock price increases on the global poker machine performance Index, compiled by the Association of Gaming Equipment Manufacturers (AGEM).

Inside Asian Gaming reports that the index reached an all-time high of 979.70 points in May.

The index is a monthly stock performance guide comprising 13 global gaming suppliers which make up the global poker machine performance total.

It is calculated based on the month-end stock price of each company and weighted based on approximation of market capitalisation.

The strength of the index has been driven by poker machine manufacturing giants Aristocrat and IGT.

May saw 12 of the 13 member companies record increases in stock price, led by Aristocrat which saw its price grow 10.4 per cent to $41.05.

The stock was responsible for 36.92 points of the AGEM Index’s monthly growth.

IGT was also strong, contributing 34.46 points on the back of a 40.9 per cent increase in stock price.

The AGEM Index grew 14.1 per cent compared with April.

The major stock indices had mixed performances, with the Dow Jones Industrial Average and the S&P 500 up 1.9 per cent and 0.5 per cent, while the NASDAQ fell 1.5 per cent.

In April, the index gew by 12.3 per cent, driven by Scientific Games and Aristocrat.

Scientific Games was the standout performance as its stock price gew 51.9 per cent, responsible for 49.89 points on the April index.

Aristocrat added 30.91 per cent, due to an 8.2 per cent stock price gain.

In total, 11 of the 13 companies recorded gains in April. This was off the back of the major stock indices also performing well, with gain to the S&P 500, Dow Jones and NASDAQ. 

Aristocrat shows no signs of slowing down

In mid-May, Aristocrat announced a half-year net profit of $346 million for the six months to March 31, driven by strong recovery in its key United States and Australia-New Zealand markets.

The company’s first half earnings guidance revealed a 12 per cent year-on-year increase in normalised net profit to A$412 million and a six per cent increase in normalised EBITDA to $750 million

Profit growth was due to exceptional product performance and customer engagement, coupled with stronger than expected consumer sentiment and economic conditions.

“These results reflect the fact that we have the right strategy and made the right choices to sustain our investment in outstanding people and product, customers, talent and culture throughout the COVID-impacted period,” Aristocrat chief executive officer and managing director Trevor Croker said.

“As a result, we have continued to take share and maintained our leadership of key gaming markets and segments, while also growing our share in digital games, where we are now a top five game publishers in tier 1 Western markets.

“We expect economic conditions across key markets over the full year to remain uncertain, as a result of the ongoing COVID-driven volatility. We are closely monitoring key factors including consumer sentiment, gaming venue patronage and currency headwinds.

“We will continue to rigorously execute our strategy over the second half of fiscal 2021, with increased investment in design and development, to support new game launches and existing games and strategic capabilities that will sustain our longer term growth.”

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