Aristocrat Provider Expresses Readiness for Coronavirus Issues

Top-performing gambling regions around the world have been temporarily shuttered due to coronavirus. Included are locations like Macau and Las Vegas Strip, that experience loss of several hundreds of millions of dollars. Some countries have already requested bailout measures like the USA and UK but it is likely that gambling operators will need additional support.

One of the top-rated producers of gaming equipment and Australia-based operator, Aristocrat, has just expressed its readiness to face coronavirus consequences.

More About Situation

Aristocrat has just released a statement to alleviate concerns regarding the potential decrease in revenues and possible effect to its clients. The report has been submitted to the Australian Securities Exchange, claiming the full recognition of expected declines which will be overcome through the well-thought business model.

According to the statement:

“The Group’s outstanding fundamentals continue to underpin our strategy and long-term confidence. Aristocrat has a conservatively geared balance sheet, with a net debt to EBITDA [earnings before interest, taxes, depreciation, and amortization] ration of 1.4x (as of 30 September 2019). In addition, Aristocrat’s term loan facility is not due until October 2024 and is covenant lite, providing significant financial flexibility.”

Additional Measures

The well-known provider of slot machines has taken some serious measures to provide for the safety and wellbeing of its workers.. It has introduced a travel ban and proper steps for the separation of employees in its facilities. Most of the staff currently work from home - 6,400 employees or 80% of the company.

Aristocrat further accentuates its ability to remain stable in this harsh period. It states:

“Diversity of Aristocrat’s operations adds to the Group’s strength and flexibility. Over the 2019 financial year, Digital games delivered over 40$ of total Group revenue, while Land Based gaming operations and outright sales contributed around another 30% each. Operations are also spread across key global and regional markets, and our Digital and Land Based businesses are addressing a broader range of segments and genres than ever before.”

It is without any doubt that coronavirus will leave significant consequences on the worldwide economies. In this atmosphere, only pragmatic casino operators will find a way to survive the crisis without major modifications.

Source:

“Aristocrat says it’s ready to weather the coronavirus storm”, Erik Gibbs, calvinayre.com, March 19, 2020.