Australian slot machine developer Ainsworth Game Technology Limited (AGT) saw its profit after tax grow 25% to AU$12.1 million in the six months to 31 December 2018, but the company expressed disappointment at its results after another tough period on the Australian domestic front.
Revenue for the first half of the 2019 financial year declined 2% year-on-year to AU$118 million while normalized profit after tax was down 47% to AU$7.2 million – aided in real terms by an AU$5.8 million gain on currency movements due to the stronger US dollar. EBITDA increased 21% to AU$29.7 million although Underlying EBITDA, which takes currency impacts into account, declined 11% to AU$23.9 million.
Domestically, Ainsworth saw its revenue fall 47% year-on-year to AU$19.7 million with profit of just AU$2 million including an AU$1.3 million one-time write-off of older style cabinets.
Conversely, the North American market saw revenue increase 40% to AU$53.8 million with profit up 47% to AU$21.6 million. Unit sales for the period rose 38% to 1,342. Revenue in the rest of the world also increased by 6% to AU$8.8 million thanks largely to a major contribution from majority shareholder Novomatic.
Addressing the results, CEO Danny Gladstone said that Ainsworth was expecting a much stronger back half of the financial year.
“Though I am disappointed with 1H19 results I expect that new game releases will improve performance on our installed base and create revenue opportunities,” he said.
“In 2019, while recognizing the intense competitive landscape, we will continue to pursue development initiatives and actively recruit experienced game developers and utilize third party developers to harness the best of our internal capabilities with external expertise. This strategy is expected to create diversity in product offerings over time with an increased level of investment in R&D activities’’.
Ainsworth has suspended its interim dividend for the period.
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