Ainsworth warns of 57.1 percent slump in profit for FY17H1

Ainsworth Game Technology has warned investors that it expects to record a 57.1 percent fall in pre-tax profit in the first half of FY17 to around A$15 million (US$11.1 million) due to “challenging industry conditions” in its domestic market.

The forecasted profit is down from A$35 million recorded in the first half of FY16.

According to letter from Ainsworth CEO Danny Gladstone, while international revenues grew by 38 percent, unit volumes for Australia have declined by approximately 30 percent in the first half of FY17.

“In Australia we acknowledge that this is a challenging period for volumes, revenues and margins. We operate in a highly competitive market against an effective market leader. We saw minimal corporate and casino sales this year together with general changes in customer purchasing patterns,” said Gladstone.

However, Ainsworth said the release of a new range of games on the A600 machine “should over time provide momentum to improve our domestic results.”

The supplier says it also expects its international revenues to grow further, due to synergies created from the acquisition of Ainsworth from Novomatic earlier this year.

SHARE

Related Articles

Ainsworth stock tumbles on projected H1 loss

Shares in Ainsworth Game Technology fell 8.5 percent in Australian trading on Thursday after the company told investors that it expected to post a loss of about $15 million in the first half of the fiscal year, due to continuing difficult trading conditions.
Suppliers get igaming boost

Suppliers get igaming boost

Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
Ainsworth and Jade ink distribution accord

Ainsworth and Jade ink distribution accord

Ainsworth Game Technology and Jade Entertainment have entered into an agreement to distribute Ainsworth Products to the Philippines, Vietnam and Nepal.
novomatic slots

Dancing Tiger & Dancing Lantern by NOVOMATIC

The latest game releases for the NOVO LINE Interactive platform add two special Asian highlights to the broad NOVOMATIC game portfolio.
Ainsworth swings to 2020 loss, focuses on game content

Ainsworth swings to 2020 loss, focuses on game content

Ainsworth Game Technology said it will prudently invest in research and development to position itself for a long-term post-pandemic recovery.

Ainsworth’s A-STAR shines

As we emerge from the shadows of Covid-19 it’s time to revamp gaming floors with the brand new A-STAR cabinet by Ainsworth.

Ainsworth sees progress in online gaming

Ainsworth Game Technology is the latest supplier to point to progress in its online offerings, as Covid-19 hits the land-based side of the business.
Ainsworth swings to 2020 loss, focuses on game content

Ainsworth reports declines in sales and profitability in FY20H1

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 […]