Australian slot machine manufacturer Ainsworth Game Technology said via a Business Update that it expects to report a profit before tax of between AU$8 million and AU$10 million for the six months to 31 December 2024, down from the AU$14 million in 1H24 despite an anticipated 12% increase in revenues.
While higher revenues reflect positive momentum across the business, Ainsworth revealed that gross margins have been negatively impacted by a range of factors, including product mix of products sold within Latin America, competitive market conditions and the under recovery of production variances expensed in the current period.
Full year margin is expected to be 62% versus a 1H24 margin of 67%, it explained.
Nevertheless, Ainsworth said all geographical regions experienced solid growth in the period apart from the digital segment, which suffered an initial decline due to the reduced contributions from Game Account Network Limited (GAN) following the acceleration of revenue arising from the termination of exclusivity arrangements reflected in 1H24.
“I am encouraged by the growth in revenue in the period and expect growth to continue in coming periods as we release the next suite of game offerings across our global markets,” said Ainsworth CEO Harald Neumann.
“The development initiates previously undertaken are having progressive improvements in game performance within our markets. Additional game releases and hardware initiatives are expected to maintain the growth experienced in coming periods.”
Ainsworth also revealed Thursday that it had fallen victim to a cybersecurity incident, which is currently under investigation and assessment. The incident, it explained, has caused some disruptions in internal business systems and operations but it not expected to cause any material adverse impact on the forecasted results for FY24.
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