Australian slot machine developer Ainsworth Game Technology (AGT) has reported a loss of AU$4 million for the six months to 31 December 2019, down from a profit of AU$12.1 million in the prior year period, due to a decline in international sales.
Issuing its 1H20 financial results late Monday, Ainsworth revealed a 9% year-on-year fall in sales revenue to AU$107.3 million including an 11% decline in international sales to AU$87.8 million. International sales comprised 82% of the group total.
The decline included a 6% reduction in sales in North America and 8% in Latin America, primarily a result of lower unit volumes.
Conversely, Australian domestic sales held steady, down just 1% to AU$19.5 million with unit sales for the region rising 2%.
Ainsworth reported a 55% decline in EBITDA for the half-year to AU$14.6 million, with a loss per share of AU$0.01.
Despite the year-on-year decline, CEO Lawrence Levy said Ainsworth was making good on its strategy of strengthening the company’s market presence.
“The transition is in progress to make AGT more profitable and efficient,” he said. “We are re-evaluating R&D, increasing our game development resources, sharpening our sales and marketing focus and complementing organic growth with selective acquisitions. We are busy building the foundations and expect return to profitability to deliver a positive net profit in the second half of FY20, with better results in FY21.”
Ainsworth stated in its results release that it is currently working to better leverage its strategic partnership with majority owner Novomatic, with discussions having taken place to enter new markets together, identify game products to transfer to AGT cabinets and share content on online platforms.
