Ainsworth net profit drops in 1H23 but revenue improves on the back of strong North and Latin America performance

Australian gaming machine manufacturer Ainsworth Game Technology reported AU$4.1 million ($2.6 million) in net profit attributable to shareholders in the first half of this year, an almost 30 percent drop from the same period last year.

According to the company's latest financial report, group revenue still improved by 16 percent during the reported period to AU$143.6 million, with the increase mainly attributed to better product performance in the North America and Latin America markets
Ainsworth also included some AU$4.4 million ($2.8 million) in foreign exchange losses related to the devaluation of Argentinian Pesos against USD after a AU$13 million ($8.4 million) investment in Argentina.
The Asia Pacific market contributed AU$21 million ($13.5 million) to the group's revenue, a 3.7 percent year-on-year drop, while its North America and Latin America & Europe segments improved 8.8 percent and 12.4 percent, respectively, to AU$68.5 million ($44.3 million) and AU$45.5 million ($29.4 million).
'The earnings performance in the Americas now represents 87 percent of the total segment result compared to 84 percent in the prior half and 83 percent in the previous corresponding period. The improved segment performance in Latin America resulted from increased outright sales generated from Argentina which are driven by strong game performance. North America contributed strongly to the Group’s result but had a lower segment result as a percentage of revenue due to higher cost of sales' the group's report informed.
'Asia Pacific achieved a lower revenue in the current period compared to the prior half as well as the pcp. This was due to lower unit sales in Australia during the current period across all states with minimal corporate sales contribution and competitive market conditions'.
Ainsworth’s Historical Horse Racing products and system also contributed with $12.4 million in connection fees reported in this six-month period.
Still, the group noted it is experiencing a greater risk of regulatory and legislative change within its Australian business by state and territory governments.
'These changes include the potential introduction of additional requirements that gaming operators will be required to comply with including the potential introduction of cashless gaming systems and functionality that assists players in managing their play of gaming machines and minimises the incidence of problem gambling,' the report added.
'The Group through its membership of the industry peak body, the Gaming Technologies Association, is working with State and Territory governments to ensure any potential regulatory and legislative changes are both sustainable and functionally effective.'

Earnings & Filings Asia Gambling Australia Financial results Latest news

Accelerating currency drop of renminbi pressures Macau tourism market
_2025-01-07UN report reveals growing presence of organized crime in pacific islands casino projects
_2025-01-06Macau GGR to grow 8% in 2025, backed by increasing travel spending: Goldman Sachs
_2025-01-03The overnight disappearance of 8XBet: a brand shrouded in controversy
_2025-01-02Macau’s gaming industry on track for strong 2025 kickoff: Citigroup
_2025-01-02China's president urges Macau to continue diversification drive away from gaming
_2024-12-20

Open in new window
View settings