GGRAsia – Ainsworth back in half-year profit, Asia revenue dips 21pct

Ainsworth back in half-year profit, Asia revenue dips 21pct

Feb 23, 2022 Newsdesk Latest News, Top of the deck, World

Australia-listed slot machine maker Ainsworth Game Technology Ltd saw its revenue from Asia markets fall 21.3 percent year-on-year in its financial-year first half, ending December 31.

Such revenue – all from sale of either gaming machines or parts for them – amounted to AUD623,000 (US$452,000), compared to AUD756,000 in the prior financial year’s first half.

“The Asia market remains challenging as this region is continually being impacted by Covid-19 with border closures,” said the firm in a Wednesday filing to the Australian Securities Exchange..

Nonetheless, group wide, Ainsworth Game returned to profit for the half, recording almost AUD9.1 million compared to a nearly AUD50.1-million loss for the same period in 2020.

No dividend was declared for the latest reporting period.

First-half group revenue rose 39.7 percent year-on-year to AUD100.7 million.

The half’s earnings before interest, taxation, depreciation and amortisation (EBITDA) were positive by AUD24.6 million, versus negative EBITDA of AUD36.8 million recorded a year earlier.

The half to December 31 results included a one-time gain of AUD3.3 million on sale of land in Las Vegas, Nevada, in the United States.

The group’s gross margin improved 10 percentage points, to 63 percent, from 53 percent in the same half of 2020.

Harald Neumann, who until February 2020 was chief executive of Ainsworth Game’s parent, Austria-based Novomatic AG, took over as CEO at Ainsworth Game in October last year.

He was quoted saying in a press release accompanying the Australian unit’s half-year results: “We are pleased to deliver an improved result for the half year, driven by reopenings and recovery in many of our major international markets.”

He added the group was also “pursuing a range of initiatives to fundamentally upgrade Ainsworth Game Technology’s game design and technology capabilities.”