The chairman of Australian slot machine supplier Ainsworth Game Technology says the company must continue to increase its investment into research and development (R&D) in order to maintain global competitiveness and gain market share.
Danny Gladstone cited R&D as Ainsworth’s key priority during an address to shareholders at the Annual General Meeting on Wednesday, pointing to an 8% increase in related expenses in FY24. R&D as a percentage of total revenue also increased from 16% in FY23 to 19% last year, with Gladstone explaining that such investment was “critical to ensure our products are competitive within our global markets.
“This necessary investment is required to assist the Group to secure experienced resources and continually develop technology for our product offerings to maintain and achieve market share gains in the increasingly competitive markets we operate within,” he said.
“Development initiatives previously initiated have progressively been commercialized with the on-going release of the A-Star Raptor [cabinet] in selected markets during the period. This, combined with the release of new game combinations, have been well accepted by our customers based on feedback received and are expected to provide opportunities for market share gains as they are approved across all our markets.”
Ainsworth released its Raptor cabinet into North America in late 2023 and Australia in February 2025, with the company stating that the latter has resulted in revenue growth in the first half of 2025.
CEO Harald Neumann said the increased in R&D investment reflects the company’s “continued focus on product development investment to produce innovative products in an increasingly competitive market. This commitment to investment in R&D is at the cornerstone of our strategy to ensure we invest in development activities to continue to develop and commercialise new and innovative gaming products.”
Gladstone also referenced a recent proposal by parent company Novomatic to acquire all outstanding shares in Ainsworth that it doesn’t already own, revealing that a Scheme Booklet was expected to be sent to shareholders in July after being reviewed by financial services regulator ASIC and the court.
The proposal has been recommended by Ainsworth’s Board of Directors, with Gladstone noting that an Independent Board Committee had “carefully evaluated the proposed offer against the company’s medium and long-term growth prospects and the alternative opportunities available, and unanimously decided to support and recommend that shareholders vote in favor of the offer for Novomatic to acquire all the relevant outstanding shares that they do not have a relevant interest, in the absence of a superior proposal, and subject to the independent expert concluding (and continuing to conclude) that it is in the best interests of shareholders.”
The proposal would see Novomatic acquire the outstanding shares for AU$1.00 per share – representing a 35% premium to the trading price at date of offer and placing the value of the deal at around AU$158.6 million (US$102 million).
