Australian gaming machine manufacturer Ainsworth Game Technology (AGT) reported a sharp 65 percent decline in net profit attributable to members for the first half of 2025, dropping to AU$4.9 million ($3.2 million) from AU$14 million ($9.1 million) in 1H24.
This downturn occurred even as revenue rose 25 percent to AU$152.1 million ($98.9 million) from AU$121.4 million ($78.9 million). The results, released on August 19th, 2025, highlight challenges from foreign currency fluctuations and one-off costs amid growth in land-based sales.
The profit drop was primarily driven by foreign exchange losses of AU$8.6 million ($5.6 million). These losses stemmed from balance sheet translations related to investments in the Americas, due to a weaker US dollar against the Australian dollar at the reporting date.
Additionally, statutory profit before tax was impacted by NOVOMATIC transaction costs of AU$1.6 million ($1 million). Novomatic on Wednesday announced an updated unconditional takeover bid for the shares of Ainsworth it doesn’t already own.
Despite the economic headwinds, underlying profit before tax remained largely flat at AU$13.9 million ($9 million), compared to AU$14.3 million ($9.3 million) in 1H24.
Revenue growth was fueled by increased land-based sales across key regions, particularly in North America and Asia Pacific. In Australia, improved contributions followed the February 2025 release of the RaptorTM cabinet. However, the gross margin fell to 56 percent from 67 percent in 1H24, affected by the product sales mix in North America and Latin America, as well as a decline in high-margin online revenue.
On the revenue side, participation and lease revenue slightly decreased to AU$32.2 million ($20.9 million) from AU$33.3 million ($21.7 million), representing 21 percent of total revenue compared to 27 percent previously. Positively, recurring connection fees from Ainsworth’s Historical Horse Racing (HHR) products and systems rose to AU$20.9 million ($13.6 million) from AU$15.9 million ($10.3 million), reflecting growing contributions to results.
Underlying EBITDA held steady at AU$26.9 million ($17.5 million), similar to 1H24, though the underlying margin slipped to 18 percent from 22 percent, reflecting pressures from the revenue mix and competitive conditions.
Financially, AGT’s balance sheet showed resilience, with a net cash position of AU$1.4 million ($0.9 million) at June 30th, 2025, improving from a net debt position of AU$11.1 million ($7.2 million) a year earlier but down from AU$9.7 million ($6.3 million) at December 31st, 2024.
