Ainsworth expects US$15mln 1H profit, hedges on Argentina

Aug 21, 2023 Newsdesk Latest News, Top of the deck, World  

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Slot machine maker Ainsworth Game Technology Ltd expects a AUD23 million (US$14.7 million) pre-tax profit for the first half to June 30, excluding currency impacts and one-off items.

“This result specifically excludes the GAN profit uplift of approximately AUD2 million and any potential write-down, should it be required on the Argentinian investments, as one-off items,” said the firm in a Monday announcement to the Australian Securities Exchange.

Ainsworth Game had mentioned in May an anticipated “initial uplift” in revenue following the amendment to a deal with GAN Nevada Inc, a subsidiary of GAN Ltd, a provider of interactive Internet-delivered games.

In the latest filing, it mentioned the “significant instability and macro-economic uncertainties” currently affecting Argentina, where it has some business interests. The country has been experiencing high inflation, and significant devaluation of the local currency the peso, relative to the U.S. dollar.

Ainsworth Game said in its Monday update it “expects to record” for the first half, “investments within Argentina of approximately AUD13 million. These investments have been made to hedge the devaluation of the Argentinian peso against the U.S. dollar and were undertaken in response to the increased limitations within Argentina to restrict the transfer of monies held in this region.”

Ainsworth Game – majority-owned by Austria’s Novomatic Group AG – expects to release its unaudited first-half numbers on August 29, after market close.

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