Ainsworth allays concerns over cybersecurity incident
Ainsworth (AGT) confirmed the incident in a statement issued today (27 November). AGT said the cybersecurity issue is being assessed following some disruptions to internal business systems and operations.
Although it did not provide any details or a specific date for the incident, the supplier said cautionary measures to mitigate it have been implemented. It does not expect the incident to have a material adverse impact on forecasted results for the second half of its 2024 financial year.
Ainsworth on track for growth in H2
In the same statement, AGT set out preliminary management forecasts for H2. For the six-month period, it expects pre-tax profit to range between AU$8 million (£4 million/€5 million/US$5 million) and AU$10 million.
This, AGT said, reflects positive momentum achieved across the business. On this, it also said revenue is likely to increase by 12% from the $121 million reported in the first half.
Setting out some details of its H2 performance, it said all geographical regions saw growth. However, the digital segment reported an initial decline due to reduced contributions from GAN. AGT terminated its agreement with GAN for the exclusive licensing rights to distribute the former’s online slots in the United States on 31 March.
AGT also said that H2 gross margins are set to be lower than H1, which will like lead to lower profitability. Margin for the full year is estimated at 62%, compared to 67% during the first half.
In addition, AGT said the cost control initiatives previously implemented ensured overheads were maintained at similar levels to H1. This is despite it expecting to report higher revenue for the period.
CEO expects growth to continue into 2025
Commenting on the preliminary results, CEO Harald Neumann said he is “encouraged” by the expected rise in revenue. He added that similar growth will likely be seen during the periods that follow.
“The development initiatives 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,” Neumann said.