Global slot machine giant Aristocrat Leisure Limited says its conservatively geared balance sheet and diversity of operations leaves it well placed to navigate the impact of the global COVID-19 pandemic.
Aristocrat issued a statement on its coronavirus impact and response on Wednesday in which it withdrew the company’s Outlook Statement from February’s AGM and detailed mitigation measures currently implemented across the group. Those measures include broad travel bans applied to staff across the globe as well as social distancing policies that has 80% of Aristocrat’s 6,400-strong staff now working from home.
However, the company cited “outstanding fundamentals” as the basis of its long-term confidence, pointing to a conservatively geared balance sheet with a net debt to EBITDA ratio of 1.4x and a long-term loan facility not due until October 2024 that is covenant light.
Aristocrat also noted that digital games accounted for over 40% of total Group revenue in FY19, with land-based gaming operations and outright sales contributing around 30% each.
“Operations are also spread across key global and regional markets, and our Digital and Land Based businesses are addressing a broader range of segments and genres than ever before,” it said.
“Aristocrat is executing comprehensive short and longer term risk management and mitigation plans, with the intention to position the business to emerge from the challenges caused by COVID-19 as quickly and strongly as possible.”