Australian gaming machine manufacturer Aristocrat Leisure Ltd today posted a net loss of A$33.1 million for the six months ended 30 June 2009. Over the first half of 2008 the company made profits of A$71.4 million. As a consequence of this downturn Aristocrat has cut its dividend to 4.5 cents (14 cents in first half 2008) and, following a rigorous four month worldwide review of operations, has announced a major transformation strategy.

Chief executive Jamie Odell said, "This was a very challenging half across all major markets, and our results, while in line with expectations, were poor." He added, "It's clear that we are not going to turnaround performance immediately. What I will be setting out today is a three- to five-year, commonsense plan, built on facts and big on basics."

The company will exit some 30 low-margin jurisdictions over the coming months and concentrate on the major markets of North America, Australia and Japan. Outside major markets it will pursue high value opportunities deliberately and with focus. A thorough cost alignment programme will extract savings through rightsizing, appropriate outsourcing, supply chain optimisation and exiting low margin jurisdictions.

“Doubling our share of the participation gaming market in North America over the next five years is our first priority. We will also grow our US systems and stepper businesses. We will increase our investment in US specific game development and make better use of leading edge technologies to add value to our portfolio” said Mr Odell. (E-08.25.09)

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