Ainsworth swings to 2020 loss, focuses on game content

Wednesday 23rd of September 2020

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

The Australian supplier posted a statutory net loss after tax of A$43.3 million ($30.8 million) for the fiscal year ending June 30th, compared with a profit of $10.9 million the year before. Revenue dropped 36 percent to $149.4 million for the full year. In the pandemic-affected second half, revenue was down 63 percent.

Research and development spending increased by 2 percent to $41.2 million.

“We continue to progress our development plans with a more targeted and innovative approach to ensure an improvement in overall game performance is achieved,” CEO Lawrence Levy said on a conference call. “This is expected to ensure a greater market share within all global markets where we operate.”

Online revenue increased by 10 percent. Ainsworth said it has expanded partnerships with social game providers and launched a U.S.-based remote gaming server. These initiatives are expected “to provide complementary revenue gains within online social and real money gaming segments in future periods,” it said.

Ainsworth said it has conducted a review of operations to reduce expenditure and to identify opportunities both at home and abroad. It has eliminated 107 roles at an annualized saving of $10 million, while other employees have taken pay cuts.

“The group has significantly bolstered its ability to develop highly competitive game content as a consequence of expanding its internal studios through the appointment of additional experienced game developers to its internal studios in Australia and Las Vegas,” it said.

The group has also reached agreements with third-party game development studios to diversify game content.