Australia-based casino slot machine maker Ainsworth Game Technology Ltd on Tuesday announced that profit for the 12 months ended June 30 increased by 14 percent in year-on-year terms.
The company reported net profit of AUD70.4 million (US$51.7 million) for the period. The result beat the firm’s own expectations of flat growth, which it had flagged in a trading update in June. The results were fuelled by an AUD25.6-million pre-tax gain from foreign currency movements, as overall revenue was down by 1 percent to AUD240.6 million.
The company stated it expects its new line-up of products to help Ainsworth to deliver strong sales and profits in fiscal year 2016.
“It is expected that revenue increases within Asia will be steadily realised in future periods as the newly revised gaming standards are introduced and new casino openings occur during fiscal year 2016/2017,” the firm added.
Ainsworth’s Asia operations reported revenue of AUD8.9 million for the 12 months ended June 30, up by 115 percent in year-on-year terms, driven by the Philippines. But the region accounted for less than 4 percent of the firm’s total revenue during the period.
Ainsworth stated it had “limited exposure to Macau market” during the period, “affected by regulatory change”.
Last year, slot makers saw the announcement of new technical standard updates in Macau. Some suppliers privately complained at the time – within the industry – about what they regarded as the short notice associated with the Macau announcement, saying it negatively affected the release schedule of new products.
The Australian slot maker said its fiscal year 2015 results benefitted from its good performance overseas – especially in the Americas – with overall international revenue up by 46 percent to AUD147.6 million. International sales accounted for 61 percent of the group’s revenue, an increase of 20 percentage points compared to fiscal year 2014.
Ainsworth’s domestic revenue decreased by 35 percent in year-on-year terms to AUD93.0 million.
Investment bank JP Morgan Securities Australia Ltd said in a note following Ainsworth’s result announcement that much of the company’s success in stabilising and growing its Australian ship market share would depend on the success of the new A600 cabinet, released earlier this month at the Australasian Gaming Expo (AGE) trade show in Australia. “We will be watching customer feedback closely over the next month or so,” analysts Matthew Ryan and Olivia Bible wrote.
They added: “North America reported an 18 percent increase in revenue (in U.S. dollars) and Latin America reported a 58 percent increase. The success in these divisions relates to momentum in the product as well as Ainsworth moving into new jurisdictions within these regions. Our view is that there is more to come.”
Ainsworth will pay a final dividend of AUD0.05 a share.
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”Ramp ups [of new Macau casinos] are taking a little bit longer. The market is somewhat volatile at the moment, but we continue to look at all the opportunities and are still very comfortable that things are starting to move ahead”
Chief executive of MGM China Holdings