Australian gambling supplier Aristocrat reports that it has acquired social casino company Big Fish Gaming from Churchill Downs for US$990 million, making it the second largest social casino publisher by revenue in the sector.
Trevor Croker, Aristocrat’s chief executive officer, said: “The strategic and financial benefits from the acquisition are highly compelling. The acquisition of Big Fish will immediately provide scale across our entire digital platform, following the recent acquisition of Plarium, which expanded our Digital business into the fast growing social gaming market.
“We are excited to work with the Big Fish team to take advantage of the opportunities this combination will create, and look forward to welcoming them to the Aristocrat family”
Aristocrat also released its FY 2017 financials Thursday, claiming strong performance in its global portfolio, especially in the Americas, as well as its digital and international CIII segments, boosting profit and revenue.
Net profit after tax was up 36 percent year-on-year at A$543 million, from revenue up 15.3 percent at A$2.5 billion, and EBITDA up 24.2 percent at A$1 billion.
The company said that it anticipates continued growth in the 2018 fiscal year, with further progress in its North America’s business, maintenance of strong growth in the Digital business, growth in class II gaming operations, and growth in earnings from its Plarium business.
Croker said that success has been achieved despite mostly flat markets and increasing competitive pressure, underpinned by industry leading content, hardware and technology, coupled with effective execution.
“Further growth in our core recurring revenue segments of gaming operations and digital social casino was particularly pleasing, with 52 percent of group revenues deriving from recurring sources during the year as well as growth in outright sales over the period,” Croker said.
“This represents further progress in ensuring Aristocrat delivers sustainable returns and cash flow over time, consistent with our strategy and shareholders’ interests.”