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

Article by : Erik Gibbs May 20, 2024

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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.

Aristocrat Leisure has made significant investments in recent years to acquire both Big Fish Games and Plarium. 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 popular titles such as Big Fish Casino, Gummy Drop, Jackpot Magic Slots & Casino, and EverMerge, contributing substantially to Aristocrat’s digital gaming offerings.

Plarium, acquired earlier in August 2017 for $500 million, brought a portfolio of strategy games like Vikings: War of Clans and Throne: Kingdom at War. Since then, Plarium has expanded its portfolio with successful new releases, including RAID: Shadow Legends, Mech Arena, and Lost Island: Blast Adventure.

Plarium’s focus on strategy and RPG elements may no longer align with Aristocrat’s revised strategic direction, distinct from the social casino genre.

Aristocrat Leisure reported robust financial results for the half-year ending March 31st, 2024. The company achieved operating revenue of AU$3.27 billion ($2.18 billion), marking a 6.1% year-over-year increase. Profits after tax also grew by 8.9% year-over-year to AU$711.3 million ($475.1 million), indicating strong financial health and stability.

However, within its Pixel United division, which houses the games units including Big Fish Games and Plarium, bookings experienced a slight decline of 0.9% year-over-year to $877 million. This decline reflects potential market challenges or strategic shifts within the gaming sector.

Despite this, Aristocrat highlighted the resilience and strong performance of its social casino titles during the period, showcasing effective player engagement and portfolio strength in key market segments.

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.