GGRAsia – Ainsworth 1H profit US$9.5mln, revenue down 16pct y-o-y

Ainsworth 1H profit US$9.5mln, revenue down 16pct y-o-y

Aug 27, 2024 Newsdesk Latest News, Top of the deck, World

Australia-listed slot machine maker Ainsworth Game Technology Ltd reported a net profit to its members of just under AUD14.0 million (US$9.5 million) for the six months to June 30. That compared with a net profit of AUD2.0 million in the first half of 2023.

Ainsworth said in a Tuesday filing to the Australian Securities Exchange that its group-wide revenue fell by 15.5 percent year-on-year, to AUD121.4 million. Revenue was down 14.1 percent from that of the six months to December 31, 2023.

The company said its Latin America/Europe segment “contributed the majority of the revenue shortfall” experienced in the reporting period.

Nonetheless, Ainsworth’s chairman, Danny Gladstone, was cited as saying of the latest results: “I am encouraged by the investments the company has and continues to pursue.

“These investments are expected to further establish the necessary foundations to enable the development and release of new and innovative products to achieve improvements in the group’s financial results.”

As of June 30 this year, Ainsworth said a total of 3,760 of its units were under operation, generating AUD$12.2 million in recurring revenue, “an increase of 8 percent on the previous comparable period”.

The firm said in a presentation deck that game development investments for the year included expanding the A-Star Raptor cabinet launch, with “exclusive library content and flexibility to bring forward classic games for increased operator choice”.

Harald Neumann, Ainsworth’s chief executive, was quoted saying in a summary of the latest results: “As we secure the remaining approvals of the A-Star Raptor across additional jurisdictions in conjunction with the progressive release of newly-developed gaming titles we expect the second half to provide increased revenue opportunities.”

In the first half, Asia Pacific – including the home market of Australia – accounted for 15.7 percent, or AUD19.1 million, of Ainsworth’s total revenue, but it was down 9.9 percent year-on-year. Most of the Asia Pacific revenue came from sale either of gaming machines or parts for them.

The firm said the performance in its Asia Pacific segment – covering Australia, New Zealand, and Asia – “was impacted in the period as competitive market conditions continued”.

The volume of unit sales fell 10.4 percent year-on-year in Asia Pacific, to 553 units. The decline was “mainly contributed from Australia sales due to competitive market conditions,” said the group.

But segment profit improved to AUD$1.6 million in the six months to June 30, compared to a loss of AUD$0.2 million in the prior-year period. “This improvement was experienced due to higher gross margins and cost containment measures put in place throughout the current period,” stated the company.

Ainsworth also has North America and Latin America/Europe business segments.

Company-wide earnings before interest, taxation, depreciation and amortisation (EBITDA) were AUD28.2 million in the first half this year, up 101.4 percent from a year earlier, said the gaming supplier.

No recommendation was made regarding dividend for the latest reporting period.

The firm said in the presentation deck: “Dividend continues to be suspended to provide strong liquidity to allow the company to continue to invest in research and development to deliver competitive products.”