Ainsworth Game Technology Ltd is still to reach its “full potential” in the Asia-Pacific (Apac) region, says Danny Gladstone, the Australia-listed slot machine maker’s non-executive chairman.
“Ainsworth’s performance within Asia Pacific was maintained as the year [2023] progressed, however, we still do not consider that it reflects the full potential within this region,” stated the veteran industry leader.
He was speaking on Wednesday at the firm’s annual general meeting in Sydney, New South Wales, and referring to the group’s annual results for calendar-year 2023.
“We have pursued additional opportunities within Asia and are continuing to invest in product development to improve game performance in these markets, to enable positive market share gains to be achieved in coming periods,” added Mr Gladstone.
The chairman observed, referring to new cabinets: “Development initiatives previously initiated have now been commercialised with the release of the new A-Star Raptor and A-Star 100 hardware in selected markets during the period.”
In mid-May this year, the group announced it had “expanded its footprint in Asia”, with “significant” installations of its slot machines at two casino properties in South Korea.
The firm placed units of its A-Star cabinet (examples pictured) – in 27-inch Dual and 43-inch Curve screen format – at Mohegan Inspire Entertainment Resort, a complex with foreigner-only casino at Incheon, South Korea.
Ainsworth also said it had installed 30 units of its A-Star cabinet at Kangwon Land, a resort with the only casino in South Korea open to locals.
In February Ainsworth stated in its 2023 annual results that revenue in its Asia Pacific segment – consisting of Australia, New Zealand and Asia – stood at AUD48.8 million (US$32.5 million currently), representing 19.9 percent of total international revenue. It was up 2.3 percent in year-on-year terms.
The company reported a net loss after tax of AUD9.0 million for full-year 2023, compared to the net profit after tax of AUD10.2 million in the prior year. That was on revenue that grew by 17.0 percent year-on-year, to AUD284.9 million.
Harald Neumann, Ainsworth’s chief executive, told investors at Wednesday’s AGM: “As you will note we have now consolidated Australia, New Zealand, and Asia under the one region as a result of changed management responsibilities introduced in the period.”
In October last year the firm said it had reached a “significant milestone in the Asian gaming sector,” with installation of 24 of its A-Star cabinets at the City of Dreams Manila gaming resort in the Philippine capital.
On Wednesday, Mr Gladstone again addressed the issue of the suspension – flagged earlier this month at the time of a first-half 2024 profit warning – of the firm’s previously-announced strategic review.
The executive said: “It was determined that it was more beneficial for our shareholders to ensure this review was not undertaken at a time where the investments in product initiatives were not as yet fully reflective in the current financial results of the company.”
He added: “This has become even more evident as the expected financial results for half one of the 2024 financial year have been impacted by delays being encountered in product releases coupled with current market conditions experienced in Latin America.”
