Australia-listed slot machine maker Ainsworth Game Technology Ltd said on Thursday that a AUD43.1 million (US$30.2 million) non-cash impairment of goodwill will be included as a one-off item for its financial year ended December 31, 2025.
The company said the decision followed a “detailed review undertaken of the North American cash generating unit, including preliminary discussions with the company’s external auditors”.
“This expected expense relates to the impairment of goodwill arising from the acquisition of Nova Technologies and MTD Gaming Inc, and is a result of the underperformance of the North American cash generating unit in financial-year 2025,” the firm added.
The filing said such underperformance had “caused Ainsworth to revise its growth assumptions for the North American cash generating unit and these have been reflected in Ainsworth’s impairment assessment”.
This, it added, “has resulted in a deficiency in the recoverable amount compared to the carrying value of this goodwill asset at the reporting date.”
The gaming supplier said other one-off items for 2025 were likely to encompass “losses of AUD22.7 million, primarily due to net foreign currency losses, transaction costs relating to the terminated scheme of arrangement and off-market takeover offers and the impairment of other non-current assets” relating to the group’s online cash-generating unit.
Ainsworth said it now expects underlying earnings before interest, taxation, depreciation, and amortisation (EBITDA) for financial year 2025 of about AUD48.0 million, compared to AUD48.2 million in the prior financial year.
“Underlying EBITDA margin for the current period is expected to be 16.5 percent, compared to 18.3 percent in the prior corresponding period, which has resulted in further pressure on operating cash flows in the current period primarily due to lower sales than anticipated, which increased inventory holdings at the reporting date,” the company stated.
The firm said the goodwill impairment would “not affect” the group’s U.S.-based unit Ainsworth Game Technology Inc in terms of its “ability to meet the financial covenants tied to the existing Western Alliance Bancorporation secured loan facility”.
In Thursday’s filing, Ainsworth also said it expects to report an underlying profit before tax, excluding currency and one-off items, of approximately AUD21.0 million for 2025, slightly lower than the AUD21.5 million estimate provided in a trading update on December 8. The company reported a AUD23.2-million profit for full-year 2024.
