Aristocrat Leisure Limited (ASX: ALL), a publisher of mobile games and a global provider of gaming content and technology, has announced that Mitchell Bowen, formerly the chief executive officer of the company's brick-and-mortar gaming division, will head the newly established online real money gaming (RMG) business sector. Hector Fernandez, a former president of Aristocrat's Americas business, will lead Aristocrat Gaming, the company's land-based gaming operation.
At the company's annual general meeting on Thursday, group chief executive officer and managing director Trevor Croker provided further information on the strategy. The news follows its rejected $2.8 billion (AUD3.9 billion) buyout bid for Playtech plc (PTEC.L), a developer of gaming software with headquarters in the Isle of Man.
According to Inside Asia Gaming, the rebranded mobile game division will serve as the umbrella for the group's Big Fish Games, Plarium, and Product Madness social gaming brands. The new online RMG segment will join the corporate structure of Aristocrat brands, which includes Aristocrat Gaming and Pixel United, formerly Aristocrat Digital.
Despite the unsuccessful takeover attempt, Coker allegedly stated that Playtech had spent the previous year "investing in building online real-money gaming capabilities in-house," and that by taking advantage of these foundations, a "build and buy" strategy will now be accelerated. Coker is an Australian manufacturer of gaming machines.
executive summaries
Croker outlined...
"We will heavily engage in developing the infrastructure of our own online RMG platform while also engaging in selective M&A, collaborations, and talent acquisitions to speed growth when necessary.
We are forming a third worldwide operational business inside Aristocrat to bring the appropriate amount of concentration and momentum to the endeavour.
"A scaled position in online RMG will take some time to achieve. It will require years of consistent commitment. Our track experience, however, demonstrates that Aristocrat is skilled at scaling enterprises.
Under Mitchell's direction and in accordance with the interests of the shareholders, we will approach this challenge with a similar mix of efficient organic and inorganic investment, financial rigour, and operational rigour.
The Group Chief leader Officer and Managing Director allegedly stated that Bowen has already "cemented his reputation as an industry executive of global standing" in relation to his appointment to the new sector. His strategic and operational influence can be seen in the gaming industry's great momentum and post-COVID recovery, which has strong employee engagement and a relentless customer focus.
"Mitchell will be supported by a dedicated leadership team that will include a number of key internal and external appointments, to rapidly bolster our capabilities in relevant areas," Croker stated.
Technique not changed:
Neil Chatfield, the chairman of the board of Aristocrat Leisure, reportedly told shareholders during the annual general meeting that while the company's failed $2.8 billion cash takeover bid for Playtech had been a "disappointing outcome," its merger and acquisition strategy would still be "disciplined."
Despite our ambition and adaptability in chasing possibilities, Chatfield said that "we will never compromise on this core commitment just to close a deal or for short-term expediency."
