The Aristocrat Leisure Limited (ASX: ALL) share price today fell 1.3% despite news of a big swing to profitability in its 2015 financial year.
In the year ended 30 September 2015, Aristocrat's result was boosted by the acquisition of the USA's Video Gaming Technologies Inc (VGT). Revenue surged 88.6% for the year, and profit slung back from a net loss of $16.4 million in 2014 to $186.4 million.
The performance was driven primarily by the VGT acquisition, which increased the group's presence in North American markets, and strong growth in Australian and digital sales. Recurring revenue increased from 24% of sales to 45%.
Pleasingly, Aristocrat's board resolved to declare a dividend of 9 cents per share, taking the full-year payout to 17 cents per share.
Operating cash flow, in constant currency, grew 130% to $379.4 million. The strong cash performance gives the company the ability to consider further acquisitions and/or invest heavily in organic opportunities, CEO Jamie Odell said.
"Aristocrat delivered outstanding performance over the twelve months to 30 September 2015, further extending our trajectory of consistent and high quality NPATA growth," He said: "The growth in the Group's recurring revenue base and strong cash flows provide the business with the capacity to consider additional organic and inorganic investments over the coming period, consistent with our strategy and shareholders' interests."
The group said its tax rate will remain above 30% for the year and expects modest sales growth, relative to its current market share, in a declining North American market.
