The predictions for the future of Aristocrat, particularly its earnings in the next financial year, have gone down by nearly one-fifth. This happened in light of the company's recent failure to acquire the fellow gaming group, Playtech.
What Happened?
The Australian digital solutions and gaming provider has found itself in a tricky situation as stakeholders from Playtech made a decision not to support the acquisition. Following this, the estimated income of the company has gone down significantly.
Broker company JP Morgan is now certain that Aristocrat will be able to acquire 6.66 billion AUD until the second half of 2023. In comparison, when the deal with Playtech seemed more likely, the forecast saw it earn 8.58 billion AUD. The lack of communication between the companies led to the failed agreement, thus keeping Aristocrat from a large part of its potential earnings.
The group is highly active in multiple markets, including the Asian territory and other jurisdictions of the world.
Statistical Data
Aristocrat has acquired revenue of 4.74 billion AUD in the recent business year. According to the predictions from JP Morgan, the general earnings of the company and the pre-tax income will be considerably smaller than it would have been in the scenario of the acquisition becoming a successful operation.
At the beginning of February, it became public that the merger between Aristocrat and Playtech did not go as planned. Despite the majority of shareowners voting in favour of the deal becoming a reality, the general number of those who voted for it has not managed to cross the needed line of 75%.
Predictions
The data analysts from JP Morgan have stated the future of the business, saying that it is not going to be hopeless, even despite the company missing out on a potentially lucrative deal.
According to the professionals, Aristocrat is currently focused on releasing cutting-edge products and expanding its activities in various online sale spaces. The group will be able to function normally regardless of the unfortunate rejection of the merger.
The specialists also added that the rumours of Playtech being sold in parts have some basis between them and that Aristocrat may still participate in negotiations regarding this new turn.
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