Aristocrat Completes Plarium Sale, Reduces Interest in Social Casino Sector
Aristocrat Leisure Limited has completed the sale of its social gaming subsidiary, Plarium Global Limited, to Modern Times Group. The transaction marks a significant step in Aristocrat's broader strategy to restructure its social gaming division.
LISTEN TO THIS ARTICLE:The company confirmed the completion of the sale in an ASX filing and announced additional changes to its digital gaming business, including a shift in focus and a rebranding initiative. As part of its restructuring efforts, Aristocrat has also decided to rebrand its former Pixel United segment under the new name Product Madness.
Related: Aristocrat Sells Fantasy Mobile Games Subsidiary to Modern TimesThis division will now house the company's core social slots business, Product Madness, along with Big Fish Games. The decision follows a comprehensive strategic review of the company's casual and mid-core gaming assets, leading to a refined direction for its social gaming operations.
The company stated that Big Fish Games will no longer pursue new game development and will undergo a substantial reduction in investment. Instead, the business will focus on maintaining and optimizing its existing evergreen titles, ensuring that resources are directed toward their continued profitability and efficient operation. This move aligns with Aristocrat's objective of consolidating its gaming portfolio to emphasize regulated gaming and gaming-themed content.
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Internal Executive Shift to Drive Growth
To oversee the newly structured Product Madness division, Aristocrat has appointed its Chief Strategy Officer, Superna Kalle, to an expanded leadership role. In addition to her current responsibilities, she will take on executive leadership for the Product Madness segment. The company believes that this change will provide a stronger management focus and facilitate strategic execution as it moves forward with its revised business approach.
Aristocrat's Chief Executive Officer and Managing Director, Trevor Croker, emphasized that the completion of the strategic review positions the company to accelerate its refreshed growth strategy. The company aims to enhance its focus on its core competencies in regulated gaming and gaming-themed content, which it sees as key areas for unlocking new opportunities in global markets.
The restructuring comes as Aristocrat's social gaming business, Pixel United, reported a total revenue of $1.75 billion for the fiscal year ending September 30, 2024. The segment recorded an adjusted EBITDA of $656 million and a net profit of $634 million. These figures highlight the scale of Aristocrat's social gaming operations and the financial impact of the restructuring.
With the sale of Plarium finalized and the strategic shift in place, Aristocrat is directing its investment and resources toward areas where it sees the greatest long-term potential. The transition of the Pixel United brand to Product Madness, along with the operational changes at Big Fish Games, reflects the company's commitment to refining its business focus and optimizing its gaming portfolio in an evolving digital landscape.
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