Aristocrat Considering Sale of Big Fish Games and Plarium Amid Strategic Transition

Aristocrat Leisure, an Australian-based casino and gaming firm, is currently evaluating the future of its subsidiaries, Big Fish Games and Plarium, as part of a broader strategic review of its games businesses.

This decision comes amidst a strategic shift towards regulated gaming and social casino sectors, where the portfolios of Big Fish Games and Plarium no longer align with the company's revised focus.

CEO Trevor Croker disclosed to the Wall Street Journal that potential options being considered include the sale or spinoff of these subsidiaries. This move excludes Product Madness, another games division within Aristocrat, suggesting its continued relevance to the company's core strategic objectives.

Acquisitions and Portfolio Overview

• Big Fish Games, purchased in January 2018 for $990 million, was aimed at strengthening Aristocrat's foothold in the social casino gaming market.

• The subsidiary is renowned for titles such as Big Fish Casino, Gummy Drop, Jackpot Magic Slots & Casino, and EverMerge.

• Plarium, acquired in August 2017 for $500 million, expanded Aristocrat’s reach with strategy games like Vikings: War of Clans and Throne: Kingdom at War.

Recent Developments and Financial Performance

• Plarium later launched popular releases including RAID: Shadow Legends, Mech Arena, and Lost Island: Blast Adventure.

• Aristocrat reported operating revenue of AU$3.27 billion ($2.18 billion), up 6.1% year-over-year, and profits after tax of AU$711.3 million ($475.1 million), an 8.9% increase.

• Within its Pixel United division, bookings declined slightly by 0.9% year-over-year to $877 million, reflecting market shifts.

Strategic Direction

• Aristocrat remains focused on regulated gaming and social casino growth.

• Product Madness continues to align with the company’s long-term goals.

• The review of Big Fish Games and Plarium underscores Aristocrat’s commitment to refining its portfolio for sustained market leadership.

The potential divestiture of these subsidiaries reflects a strategic focus on the regulated gaming and social casino sectors while reaffirming the importance of other divisions, like Product Madness, in driving the company's future growth.