Australia-based slot machine maker Ainsworth Game Technology reported year-on-year declines in both sales and profitability in the six month period ending December 31.
Total revenues stood at A$107.3 million, which was a 9 percent decline.
Losses after taxes were -A$3.8 million, compared to a profit of A$12.1 million the previous year.
The regions which suffered the poorest results were Asia and Europe, where revenues were down by 51 percent. However, looking forward the company said it would be “leveraging our strategic partnership with Novomatic to drive additional revenues in new markets within the region.”
Despite the disappointing results, the CEO’s address anticipated that Ainsworth would return to profitability in the second half, and that the FY20 full year results would also record a profit.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.