Aristocrat first half profit up 20 % on new markets

Aristocrat said the company planned to buy back shares and pay special dividends to free up capital, but warned trading conditions would remain difficult in the second half. "The operating environment in the second half, although on an improving trend, will remain difficult in each of the major markets," Aristocrat said in a statement.

The company said net profit for the six months to June 30 was us$ 101.8 million. Consensus analyst forecasts pointed to half-year net profit of us$ 96.3 million to us$ 100 million following guidance from the company in May.

Aristocrat said regulatory conditions in its three largest regions, Australia, North America and Japan remained difficult, but its emerging markets in Asia-Pacific, Europe and South Africa posted strong results. A strong Australian dollar reduced earnings by about us$ 8.5 million.

The firm said it planned to start an on-market share buyback programme of up to us$ 80.2 million a year over the next three to five years. It also said it expected to pay 60-70 percent of earnings in dividends and flagged two special dividends of 10 cents a year.

Aristocrat said in May it was well placed to capitalise on new gaming industry regulations in Japan, which come into full effect in mid-2007.