Aristocrat Leisure Ltd. chief executive Paul Oneile says overseas sales, particularly in the U.S., remain the largest contributor to profit growth for the world's second largest manufacturer of gaming machines. The Sydney-based company said last Tuesday that net profit in 2005 rose 72% to a record A$244.3 million (US$180.5 million) from A$142.2 million (US$105 million) a year before, led by greater U.S. and Japanese sales. Overall revenue rose 15% to A$1.32 billion (US$975.2 million) from A$1.14 billion (US$842.2 million).

As sales decline in its home market, Aristocrat has been looking overseas for growth. In Australia sales dropped 4.5%, while profits rose 10%. Overseas earnings rose to 75% of the 2005 total from 70% in 2004. With sales in Pennsylvania and Florida expected to start by the fourth quarter, analysts expect the U.S. will be the strongest contributor to Aristocrat’s growth.

From Sydney Oneile said: "While in the near term there are uncertainties in some markets, the company expects further strong growth from operations in North America and a number of other overseas territories, while newly acquired businesses will contribute earnings during the current year." With the Pennsylvania and Florida casino openings, the opportunities are "terrific opportunities for us," Oneile added.

Aristocrat claims 40% of the Macau market and the company also expects to begin sales in Russia by the end of 2006. It is looking to enter markets in Vietnam, Cambodia, Singapore, Thailand and the Philippines, apart from increasing sales in Macau over the next three years with the opening of more casinos in the Chinese enclave. Aristocrat has a market capitalization of A$4.36 billion (US$3.22 billion), and announced a final dividend of 20 Australian cents a share, fully tax paid, bringing the total dividend for 2005 to 30 cents a share. At close of business in Australia on Tuesday, Aristocrat shares were down 5 cents at A$11.37. (E-02.21.06)

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