Aristocrat to review Japan operations after Q3 loss

Aristocrat Entertainment said it was reviewing its operations in Japan after its business there held back profit in the third quarter due to regulatory and other issues.

On a net basis, the group on Monday reported a loss of $16.4 million due to a charge on the sale of its lotteries business and a $78 million write down of its pachislot business.

Aristocrat chief executive Jamie Odell said the company still had two games to release in Japan, but recent and pending regulatory changes made the market uncertain. He said the group was reviewing its options.

In Q3, the pachislot business saw a 6.2 percent decline to 1.3 million units shipped. The company said it had released just one new title in the reporting period, compared with two in the prior year.

Changing regulations are causing suppliers to rework games, which has delayed the release of the company’s Black Lagoon 2 game, it said.

Excluding items, the Australian-listed company reported a 10.2 percent gain in profit to $118.1 million ($102 million). Earnings per share rose 6.7 percent to 20.7 cents.

Revenue rose 6.9 percent to $870.3 million, though excluding Japan revenue was up 13 percent.

 

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