12 August 2003 15:52
Aristocrat to continue pursuing overseas business interests
SYDNEY, Aug 12 AAP - Aristocrat Leisure Ltd today said it would continue to pursue business in South America, despite
being stung by a failed Colombian contract. Aristocrat acting chief executive officer David Creary said the gaming
sector world-wide was "exploding". "It is a big playing field and I think it would be neglectful of a
company such as Aristocrat or any other major manufacturer to exclude any regulated region throughout the world,"
Mr Creary said. "We will be exploring opportunities in a responsible manner globally, whether it's South
America, Russia or North America." Aristocrat today recorded its first net loss since listing on the Australian
Stock Exchange in 1996. It reported a net loss of $32.9 million for the six months to June 30, 2003, compared with a net
profit of $41.6 million in the same period a year earlier. The result comes just one week after the troubled poker
machine maker said it had settled its Colombian contract dispute, paying $US3.5 million ($A5.43 million). The dispute,
believed to have involved entities associated with Colombian casino operator Carlos Quintero, was first made public in
April when Aristocrat posted the first of a number of profit warnings. Aristocrat has since made further profit
downgrades in relation to the difficult South American contract and poor performance by its United States operations.
Aristocrat said last week that the original contract had been for the sale of 3000 Mark V machines in kit form and that
1680 cabinets from the kits had been recovered. It also said then that the remaining 647 machines would be assembled by
the customer with assistance from Aristocrat and retained by the customer for use in its business. The troubled
Colombian contract is one of a number of matters connected to court action taken by Aristocrat against former chief
executive officer Des Randall. In documents lodged in the NSW Supreme court at the end of last month, Aristocrat claims
Mr Randall was directly responsible for the loss of the Colombian contract. The company said in the documents that by
causing or allowing the machines to be shipped overseas without payment or security for payment, Mr Randall had acted in
breach of his contract. By 1352 AEST, Aristocrat shares were up 14 cents or nearly nine per cent at $1.71. AAP
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[AIW [Asia Africa Intelligence Wire]] |
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