VGW posts $207m profit in first half

Gaming tech firm VGW Holdings has posted a $207 million profit for the first half of the financial year, describing it as a pleasing result in a challenging environment with increased competition.

The Laurence Escalante-founded company reported revenue of $2.8 billion for the six months to December 31, up 29 per cent from the prior corresponding period.

If the Perth business continues this trajectory, it would be on track to crack $5 billion in revenue for the first time after reporting $4.84 billion in revenue last year.

It notched profit after tax of $207 million, up 23 per cent from the prior period, and its basic earnings per share were up 28 per cent to 32.96 cents.

“Revenue growth of 29 per cent contributed to higher earnings, partially offset by increases in some expenses as we continue to invest in our people, customers and products,” Mr Escalante said.

“But overall, this was a pleasing outcome given the more challenging macroeconomic environment and increased competition.

“Moving forward, we are focused on delivering ongoing growth and disciplined management of expenses, with our strong balance sheet providing optionality through the cycle, including allowing us to reinvest for growth as opportunities arise.”

Mr Escalante said despite some of the external short-term challenges, the long-term outlook remained positive for the company.

“While only a few months into the calendar year, we’ve had a positive start to 2024 and the second half of our financial year, seeing top line growth through January and February,” he said.

“Given the uncertain external operating environment, whether that be the economic outlook or geopolitical tensions, these trends may or may not continue for the remainder of the financial year.

“However, over the long term, our outlook remains bright and we are well positioned to execute.”