Ainsworth Tech profits fall

News on 30 Aug 2017

Ainsworth Game Technology Limited’s full year results to end June 2017 were released this week, showing a 32 percent year-on-year drop in profits which Management blamed on a weak first half performance, but noted that recovery was experienced in the second half.

Profit after tax for the full year was A$37.9 million, a decline from the previous fiscal year’s A$55.7 million, whilst EBITDA fell 27 percent to A$70.3 million.

Mitigating the first half weakness, pre-tax profit in the second half was better than expected at A$42.2 million, a 178 percent rise over the same period in the previous year.

Total FY revenue fell 1 percent to A$282.1 million, with strong growth in international markets offsetting weaker performance in the domestic market.

CEO Danny Gladstone reported that the improved second half reflected the competitiveness of the company’s broader product offering, investments in technology, sales and marketing, and the strength of Ainsworth’s international footprint.

The company revealed growth in profit in its Latin American business, with profits up 11 percent, whilst in North America, the recently launched Pac Man licensed product is showed strong growth, and the now fully integrated Nova Technologies is driving further success.

However North American revenues fell 9 percent year-on-year to A$101.4 million, while profits declined 10 percent at A$44.7 million.

Domestic revenue fell 9 percent to A$74.1 million, down from A$81.5 million in the prior-year period, and profit dipped 17 percent in the year.

Ainsworth Management predicted that its strategic investments in real money gambling and social casino platform technology will provide further opportunities for growth, and revealed that in the company’s new financial year it will expand into new online markets through Novomatic’s Greentube online platform, as well as exploring new licensed opportunities in Latin America.

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