GGRAsia – Ainsworth posts 22pct decline in Asia revenue in FY2019

Ainsworth posts 22pct decline in Asia revenue in FY2019

Oct 28, 2019 Newsdesk Industry Talk, Latest News, Top of the deck

Revenue from the “Asia” market segment at Australian slot machine maker Ainsworth Game Technology Ltd fell by 22.4 percent year-on-year to about AUD2.5 million (US$1.7 million) in the 12-month period to June 30.

Ainsworth added that another measure of performance for Asia – the “segment result” – was AUD1.3 million, compared with AUD373,000 in the prior-year period, said the firm in its annual report, filed on Monday to the Australian Securities Exchange. The result for fiscal-year 2018 had been negatively affected by a one-off impairment loss for trade receivables of AUD920,000.

Almost all of Ainsworth’s revenue in Asia for fiscal-year 2019 came from “machine and part sales”.

Ainsworth had already announced in August that fiscal-year 2019 profit had fallen 65.9 percent year-on-year to nearly AUD10.9 million, on revenue that declined 11.8 percent for the period, to approximately AUD234.3 million. At the time, the firm did not provide a breakdown for performance in Asia.

In comments included in the firm’s annual report, chief executive Lawrence Levy mentioned the decline in revenue in Asia, but the group gave no commentary on the reasons.

Ainsworth announced in late September some planned board changes. Danny Gladstone – a current non-executive director and previous chief executive – is slated to become chairman at the conclusion of the firm’s 2019 annual general meeting to be held on November 26.

Graeme Campbell, the current chairman, is due – after the annual meeting – to step down and assume a role as the firm’s lead independent director.

Austria-based casino equipment maker Novomatic AG has been Ainsworth’s majority owner since January last year, and its strategic partner in sales and technology.