Ainsworth warns of falling local sales, shares slump

Ainsworth Game Technology warned falling local sales would lead o lower profit in the first half of the financial year triggering a slide in the company's shares.
CEO Danny Gladstone told shareholders at the annual meeting in Sydney on Wednesday that "softness" in sales in the domestic market would hit revenue in the first half, but it sees buying in the second half from the North American market.
"Domestic revenue for the first half of 2014-15 is expected to be similar to the second half of 2013-14 and down approximately 30 percent compared to the previous corresponding period," Gladstone told shareholders.
He said that given expected lower domestic revenue, the company will report lower (interim) profit compared to the corresponding period, but in line with the second half of 2013-14.
The company’s share price tumbled as much as 12 percent after the speech reached traders. Shares in the A$876-million ($765.6 million) company, in which executive chairman Len Ainsworth holds a 49 percent stake, have slid some 40 per cent in the past year.
Analysts were reported as saying they expected first-half net profit, excluding one-off items, to slide by 12 percent to $31.3 million. The full-year revenue was forecast to rise 12 percent to $277 million, according to Bloomberg analysts.
In a bid to boost income, the company is looking to launch a series of new releases, including games based on famous movies like The Sound of Music and Showgirls.
Ainsworth said a joint venture signed in August meant a "social casino offering on both desktop and mobile devices" will be up and running in January.