Ainsworth profits slip

Australia-based slot machine supplier Ainsworth Game Technology has registered a 37.8-per-cent year-on-year fall in net profits for the six months up to the end of December 2016.

The Sydney-based casino gaming developer declared six-month earnings before interest, tax, depreciation and amortisation of Aus$31.9m (€23m/$24.4 m), which represents a decline of nearly 41 per cent year-on-year.

Ainsworth told investors that it experienced a “temporary decrease” in revenue in the first half of its fiscal year due to “timing delay in approval of cabinets and game software”.  Additionally, it said that it continues to face a “challenging period for domestic operations”.

Meanwhile, a 33-per-cent rise in research and development expenditures contributed to the company recording an 18-per-cent increase in total operating costs to Aus$58m.

The company reported total revenue of Aus$122.7m for the six months through to the end of the year, which was down 14 per cent from the previous year.

Ainsworth stated that international markets accounted for 67 per cent of its aggregate revenues during the half-year period.

Excluding foreign exchange rate movements, Ainsworth anticipates full-year profits to be “at least” Aus$55.7m, which compares with just over Aus$70m for the previous financial year, as its Australian market recovers due to the development and launch of new games and products.

The firm declared that it expects strong growth in North America thanks to its new offices in Las Vegas.

Ainsworth also said that it expects to begin delivering on collaborations with Novomatic “in the second half of financial year 2017” after the international gambling company acquired 52.2 per cent of the business last year.

Related article: Novomatic set to surpass €4bn revenue mark in 2016