Australian gaming machine manufacturer Ainsworth Game Technology Limited (AGT) is expecting between AU$8 million ($5.19 million) and AU$10 million ($6.49 million) in profits before tax for the second half of the financial year.
This forecast is based on preliminary management estimates and is subject to final period-end closure and audit procedures.
The company has reported an encouraging revenue growth of approximately 12 percent compared to the first half of the financial year, which recorded revenue of AU$121.4 million ($78.83 million).
Growth was observed across all geographical regions, although the digital segment faced initial setbacks due to reduced contributions from Game Account Network Limited (GAN) following the termination of exclusivity agreements.
In conjunction with the trading update, AGT has disclosed a cybersecurity incident that is currently under investigation.
While this incident has caused some disruptions to internal systems and operations, the company has enacted precautionary measures and does not foresee any material adverse effects on its forecasts for the second half of 2024.
AGT anticipates gross margins of around 62 percent for the full year, a decrease from the 67 percent margin reported in the first half. This decline is attributed to several factors, including the product mix in Latin America, competitive market conditions, and the under-recovery of production variances.
Despite these challenges, the company has successfully maintained overhead costs at levels consistent during the period in analysis through effective cost control measures.
Harald Neumann, AGT’s Chief Executive Officer, expressed optimism about the company’s future performance, saying he is “encouraged by the growth in revenue during this period and expect it to continue as we release our next suite of game offerings in global markets”.
“The development initiatives we have undertaken are yielding progressive improvements in game performance, and additional game releases and hardware initiatives are expected to sustain this growth”, he stated.
