GGRAsia – Slot maker Ainsworth expects better fiscal 2H profit

Slot maker Ainsworth expects better fiscal 2H profit

Nov 27, 2018 Newsdesk Latest News, Top of the deck, World

Australia-based slot machine maker Ainsworth Game Technology Ltd says it expects its second-half performance to improve compared to the first six months of the firm’s fiscal year ending June 30, 2019.

“Second-half fiscal-year 2019 profit before tax, excluding currency movements, expected to increase by at least 75 percent compared to first-half fiscal-year 2019,” the Australian manufacturer said in a presentation during the company’s annual general meeting on Tuesday.

“Second-half financial 2019 revenue and profits also expected to increase” compared to the prior-year period, excluding some one-off items, said the company.

Ainsworth Game last week forecast that its profit before tax in its financial first half will fall to AUD8 million (US$5.8 million) from AUD11 million a year earlier. The firm said it expected the first-half results to reflect “solid performance in the Americas and challenging conditions in the Australian markets”.

A separate statement from Ainsworth Game to the Australian bourse on Tuesday quotes the company chief executive Danny Gladstone as saying: “In fiscal year 2019 we will continue to execute on our strategies to grow our international footprint, broaden the product library and drive higher quality recurring earnings.”

He added: “By focusing on international sales, investing in new technologies, increasing recurring revenues from participation and leveraging our partnerships, we are strengthening Ainsworth Game for the competitive challenge and long-term performance.”

Mr Gladstone said additionally that Ainsworth Game would “continue to review” the opportunities with Novomatic AG. The group’s majority owner, Austria’s Novomatic, has said it thinks the combination of the two firms’ technology can help the duo expand overall market share in Asia for slot machines and other electronic games.

“We have completed the development and integration of 20 Ainsworth Game slot titles for their [Novomatic’s] Greentube Pro social casino platform, which will be used in North American land-based casinos,” said Mr Gladstone. “We are investigating other licensing opportunities with land-based casino machine sales, taking a bundled approach.”

The slot manufacturer in September announced that Mr Gladstone would relinquish the post after June 30 next year. Ainsworth Game’s chairman Graeme Campbell said in a speech during Tuesday’s meeting that a search process “is currently underway to find a suitable replacement and Danny has kindly agreed to remain in the role to ensure a smooth and orderly transition”.