GGRAsia – Ainsworth flags improved revenue in half to December

Ainsworth flags improved revenue in half to December

Feb 10, 2021 Newsdesk Industry Talk, Latest News, World

Australia-based slot machine maker Ainsworth Game Technology Ltd says it expects to report “improved revenue” for the six months ended December 31, 2020. This reflects an increase of 71 percent on the AUD42-million (US$32.5-million) recorded in the first half of 2020, but a 33-percent reduction on the prior-year period.

In a business update on Wednesday, the company said it expected to report an AUD14-million pre-tax loss in the first half of fiscal-year 2021, which ended on December 31. Such loss excludes a currency-exchange loss of about AUD14 million, “due to the strengthening of the Australian dollar against the U.S. dollar,” it stated.

Ainsworth Game said it expected underlying positive earnings before interest, taxation, depreciation and amortisation (EBITDA) of AUD6 million for the reporting period, excluding currency-exchange issues and one-off items.

The gaming equipment supplier said additionally that the group’s performance in the North American market “continues to show positive signs with revenue in the current period of AUD41 million compared to the AUD21 million in the previous half, and AUD51 million in the prior corresponding period.”

In Australia, “improvements in the period demonstrate strong performance from recently released products,” stated Ainsworth Game. “Revenue of AUD19 million was achieved, an increase of 118 percent on the previous half, and in line” with the prior-year period.

The Latin America segment however “continues to be adversely impacted by high Covid-19 transmission rates,” said Ainsworth Game. “Given the uncertainties and deferrals of purchasing decisions caused by the pandemic within this region, further reductions in revenues are expected in the short term, before a return to pre-pandemic activity levels, impacting timing of expected cash flows.”

In Wednesday’s update, Ainsworth Game said it had cash balances of AUD24 million, resulting in net debt of AUD15 million as of December 31, 2020.

In commentary filed in October, Danny Gladstone, the group’s chairman, had said the firm would not reinstate dividends for shareholders until the group’s “markets become more predictable”.