Smartphone gambling apps are adding revenue faster than pokies at Aristocrat

Joe Raedle/Getty Images

Revenue from smartphone gambling apps is becoming a serious business for Australia’s Aristocrat Leisure, better known for its poker machines in clubs and pubs.

Its digital revenue jumped 145.3% to $123.4 million in the 2015 year after launching its flagship Heart of Vegas app on mobile platforms and on Facebook.

Compare that to revenue which grew 88.6% to $1.582 billion.

Overall, Aristocrat returned to profit, posting a statutory net profit of 186.43 million for the 12 months, up from a $16.4 million loss. Normalised net profit was $236.1 million, a 78.9% increase.

The company says performance was driven by the successful acquisition and integration of a business in the US, outstanding growth in Australian and the strong performance from the digital business.

During the year, Aristocrat launched Heart of Vegas on Facebook, iOS and later in the year Android.

The numbers are impressive:

  • Daily active users averaged 799,840 and ended the year at 1.089 million.
  • Average daily revenue per active user was 38 US cents.

And the company’s social digital business, Product Madness, was awarded Social Slots Operator of the Year by eGaming Review in the US. Heart of Vegas has 1.7 million likes on Facebook.

CEO Jamie Odell says he anticipates further growth in daily active user numbers and in overall revenue from digital.

However, he expects average revenue per daily active user and margins to moderate over 2016 as Aristocrat hits scale and grows into new channels.

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