Australia-listed slot machine maker Ainsworth Game Technology Ltd reported first-half net profit down 65.0 percent year-on-year, to AUD4.9 million (US$3.2 million), from AUD14.0 million a year earlier.
That was on total segment revenue that grew 25.3 percent year-on-year in the six months to June 30, to AUD152.1 million.
The firm said in a Tuesday filing to the Australian Securities Exchange: “Despite higher revenue, the lower 35-percent segment margin compared to the prior calendar period was affected by gross profit from product mix of sales in Latin America, competitive market conditions, [and] the planned run-out of previous generation cabinets prior to the launch of the A-Star Raptor across additional markets during the current period.”
In an accompanying statement, Danny Gladstone, Ainsworth’s chairman, was quoted saying: “Despite the challenges encountered, the result for the current period was in line with our expectations.”
He added: “Development activities previously undertaken have ensured sustainable profitability, with revenue increasing 25.3 percent and 6.6 percent in the current period compared to the prior calendar period and the prior half – second half of calendar year 2024 – respectively”.
The company noted: “The implementation of cost measures focusing on technology, development, and culture to improve product performance, lift staff retention rates and enable the attraction of experienced development talent resulted in improved fixed cost leverage in research and development and administration expenses.”
The group’s first-half earnings before interest, taxation, depreciation, and amortisation (EBITDA) slipped 48.2 percent year-on-year, to AUD14.6 million. The group’s earnings presentation stated the latest EBITDA figure included AUD8.7-million worth of “currency translation losses”, compared to “AUD2.0 million and AUD7.6-million currency translation gains” in the prior-year period and prior half respectively.
Ainsworth said that as of June 30 this year, it had a total of 3,688 of its slot machine units under operation, generating AUD11.3-million in recurring revenue. Ainsworth stated this was “a reduction of 7 percent on the prior calendar period, however a 9 percent increase compared to the prior half, with the average yield being maintained at US$12 per day”.
Asia Pacific slots, online segment
The firm said that in its Asia Pacific segment – covering Australia, New Zealand, and the rest of the region – “performance was significantly improved in the period following the release of the A-Star Raptor cabinet in February 2025”.
Asia Pacific revenue was AUD34.6 million, “an increase of 81 percent on the AUD19.1 million in the prior calendar period”, said the company.
The region achieved 1,049 unit sales in the period, “a 90 percent increase” year-on-year. Average selling prices were maintained at AUD25,900, consistent with the prior-year period, it noted.
“Segment profit improved to AUD7.9 million (23 percent), compared to AUD1.6 million (8 percent) in the prior calendar period,” added Ainsworth.
Ainsworth also has North America and Latin America/Europe business segments.
The company also gave in its first-half results some commentary on the offer made on April 28, for its Austrian majority owner Novomatic AG, to acquire the remaining minority shareholdings for AUD1.00 per share.
Ainsworth noted: “The aggregate offer value implies an equity value of AUD336 million which was below the group’s net asset carrying value both on the offer date and as at 30 June 2025.
“In accordance with the group’s accounting policies, this constituted an impairment indicator, triggering an assessment of whether the carrying values of any cash-generating unit (CGU) or group of CGUs exceeded their recoverable amount as at 30 June 2025.”
Ainsworth stated: “Management has recognised an impairment charge of AUD2.1 million against the carrying value of [the] online CGU, reflecting the underperformance in financial results.”
Segment revenue from online gaming fell 45.1 percent year-on-year to AUD2.8 million in the first half this year.
