Projection for Aristocrat’s Profits Fall Short
When it comes to poker machine development, Aristocrat is at the top of its game. The poker machine developer has worked hard for 50 years to get a near-monopoly on the Australian gambling market. However, things do not seem to be going as well as planned for the famed gaming operator, as half-year profits for 2012 have fallen short of the company’s predictions.
Aristocrat had originally seen an encouraging result to start the year. The company’s profits jumped from $30 million to $33 million, and analysts believed that the upward trend would continue. However, this has not been the case – while profits were projected to reach $39 million by the end of July, Aristocrat’s profits instead dropped by a disappointing 11%.
Over the course of the past year, Aristocrat’s online division has contributed greatly to its profits. The company’s online pokies and mobile games have helped to boost revenue, but it does not seem to be enough.
It seems that the economy is to blame, despite Aristocrat’s reassurance that it would not have an effect on its forecasted outcome. Now, the company will have to re-evaluate. With project full-year profits predicted to reach $47 million, Aristocrat will have to rein it in and consider a more realistic outcome considering its current situation.