Net profit of Australia-listed slot machine supplier Ainsworth Game Technology Ltd plunged by more than 50 percent in the first half of its financial year as a result of a one-time tax adjustment.
In a regulatory filing on Tuesday, Ainsworth announced that its company’s net profit from operations in the first half of fiscal 2018 tumbled to AUD9.7 million (US$7.6 million) from AUD$20.6 million (US$16.14 million) in H1 FY17.
Ainsworth’s total revenue for the six months to December 31, 2017, dropped 2 percent to AUD120.3 million ($94.3 million) from AUD$122.7 million ($96.18 million) in the prior year period.
The company attributed the dismal financial result to the one-off adjustment of AUD8.6 million ($6.74 million) in the first half of fiscal year 2017, which reflected “the reversal of previously-recognized deferred taxes resulting from the treatment of foreign currency movements.”
Ainsworth also noted that revenue growth from international markets was offset by “a weaker domestic performance.” Ainsworth’s international revenue grew 2 percent to AUD83.2 million ($65.22 million) in H118, while its Australian market slid 10 percent to AUD37.1 million ($29.08 million).
Excluding cost of sales and financing, Ainsworth’s total operating costs fell 8.2 percent to AUD56.3 million due to lower administrative and research and development expenses.
Ainsworth Game CEO Danny Gladstone said the financial results were in line with expectations, noting that it “provides a solid base for a strong second half performance.”
The company predicts that Ainsworth’s second half profit will be “modestly ahead” of the AUD42.2 million revenue it posted in H217.
To ensure further growth in the second half, Ainsworth said it will invest in new technologies and increase its range of innovative content. The company also vowed to intensify its sales and marketing focus.
“We enter the second half with good momentum and we are making continuing progress in growing in the Americas … We expect to increase our units on participation, driving high quality earnings and strong cash flow,” Gladstone said.