What: Given their national popularity it's no coincidence that some of Australia's most successful international companies are in the pokie machine business. Market-leading operator Ainsworth Game Technology Limited (ASX: AGI) today posted a net profit of $61.1 million on total sales of $244.1 million.
Notably, international revenue contributed $100.8 million, up 37% on the prior period. The company also declared a final dividend of five cents per share.
So What: It's evident that spending hours on end trying to line up five strawberries in a straight line on an electronic gaming screen is an increasingly popular activity globally. As such Ainsworth has now delivered five consecutive years of substantial revenue growth.
Another global trend has been to relax laws on gambling restrictions, warnings, and online gaming in general. The U.S. and Asia have been particularly accommodating, thus benefiting Ainsworth and its global expansion plans. Investors along for the ride could expect to see some decent gains too.
Being from pokie-land Ainsworth benefits from the technological advantages of its machines and intellectual acumen of their designers and its management team. This is what creates a competitive advantage and barriers to entry, as punters like the flashiest machines, and Ainsworth's casino clients like the machines most assuredly designed to attract then divest the punters.
Now What: Given the competitive and heavily saturated nature of the Australian market it's no surprise that Ainsworth is looking to continued international growth.
The company said it is expecting another strong year ahead and intends to commence construction of a purpose built facility in Las Vegas for completion in FY 2016.
Despite the promising outlook shares were down nearly 10% to $3.33 today as the result missed analysts' high expectations. This would give punters an opportunity to buy at a reasonable valuation. However, if you're looking for a growth stock on a better valuation then why not read up on The Motley Fool's favourite stock to buy right now. It's climbed nearly 10% in the last five days and is worth knowing about before it's too late!
