Ainsworth posts profit above-guidance in FY17

Ainsworth Game Technology reported profit after tax of A$37.9 million for the year ended June 30, 2017, ahead of guidance, as a result of a strong second half.

Ainsworth chief executive officer Danny Gladstone said the FY17 results were ahead of the company's initial guidance, with the second half of FY17 recording profit before tax of A$42.2 million, an increase of 178 percent compared to first half of the year.

“Our impressive second half performance begins to reflect the competitiveness of our broader product offering, our investments in technology, sales and marketing, and the strength of our international footprint,” said the chief executive.

Total revenue fell 1 percent to A$282.1 million, with strong growth in international markets offsetting weaker performance in the domestic market.

Ainsworth said it saw growth in profit in its Latin American business, with the number of machines in the region increasing 48 percent in FY17.

Revenue in the Latin America segment increased 5 percent in the year, while profits rose 11 percent.

In North America, the recently launched Pac Man licensed product is showing strong growth, and the now fully integrated Nova Technologies is driving growth in Class II markets.

Revenues for the North America segment fell 9 percent year-on-year to A$101.4 million, while profits fell $44.7 million, down 10 percent year-on-year,

The company says it is witnessing some “early signs” of recovery in Australia, with sales in FY17 growing 6 percent year-on-year.

Domestic revenue fell 9 percent to A$74.1 million, down from A$81.5 million in the prior-year period. Profit fell 17 percent in the year.

Looking ahead, Ainsworth says its strategic investments in real money gambling and social casino platform technology are expected to provide further opportunities for growth.

In FY18, the supplier says it will further strengthen its position by expanding into new online markets through Novomatic’s Greentube online platform, as well as exploring new licensed opportunities in Latin America.

More news from this jurisdiction

AustraliaFriday, Nov 17, 2017

The merger of Tabcorp and Tatts Group is back on track after the Australian Competition Tribunal ruled on Friday that the merger is allowed proceed again.

AustraliaWednesday, Nov 15, 2017

Lottoland has been barred from accepting bets on the outcome of Australian lotteries, after a decision was handed down from Northern Territory Attorney-General Natasha Fyles on Tuesday.

AustraliaTuesday, Oct 31, 2017

The Exhibition and Event Association of Australasia (EEAA) yesterday announced the 2017 Australasian Gaming Expo as a finalist in its premier annual awards.

Australia, NepalTuesday, Oct 31, 2017

Australia-listed Silver Heritage Group says it has recorded gross profit if US$5.1 million for the nine months year-to-date, up 20 percent over the same period in FY16.

AustraliaMonday, Oct 30, 2017

ASX-listed Tabcorp Holdings Ltd recorded a statutory loss in the first quarter of FY18, as a result of a number of significant items.

AustraliaThursday, Oct 26, 2017

Australia’s Black Economy Taskforce is warning punters against using illegal bookmakers during the major sporting events in the year ahead.

AustraliaThursday, Oct 26, 2017

Star Entertainment Group chairman John O’Neill says his company is in a state of “eternal vigilance” regarding losing its monopoly in the Sydney casino market.