Ainsworth sees annual profit slide despite strong first half

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Ainsworth Game Technology, an Australia-based manufacturer of slot machines, reports that its previous fiscal year profit was $23.3 million, a 15.8% decline year-on-year. Its revenue for the period fell 5.8% compared to last year, coming in at $194.2 million. Pre-tax profit also declined, falling about 9.8% to around $30.9 million. All figures are in U.S. dollars.

Ainsworth sees annual profit slide despite strong first halfThe company’s EBITDA (earnings before interest, taxes, debt and amortization) slipped 3.3% year-on-year to $49.7 million. Adjusted EBITDA, accounting for currency impacts and other items, dropped by 19.6% year-on-year to $49.4 million.

If there is a silver lining in the numbers, it’s that sales increased during the second half of the fiscal year. The total brought in for that period was $106.2 million , while only $87.9 million was recorded for the first half. Ainsworth sold 9,714 units during the fiscal year, a drop of 9% from the previous period.

The decline came from “lower Asia, New Zealand and Europe Sales” for the period, according to the report. There was also a one-off impairment loss of $658,207 that stemmed from an “Asian trade receivable.”

Profit before tax, when measured prior to accounting in order to compensate for currency fluctuations, came in at $28.6 million. This was “slightly ahead of the upgraded guidance provided” the company had reported in July.

The company’s CEO, Danny Gladstone, said when reporting the figures to the Australia Securities Exchange, “Our performance continues to show signs of improvement and is a direct result of the strategies implemented to expand our international footprint, invest in technology to enhance our product suite, and build our participation fleet to improve the quality of our earnings.”

He also asserted that Ainsworth recognizes “the intense competition” it had to face across its operating markets, but is confident that the company “can outperform” in the sector.

Gladstone added, “We will continue to judiciously invest our cash flow in product improvements and innovation, and sales and marketing while retiring debt and rewarding shareholders. In fiscal year 2019 we expect to release a new suite of products which should assist in translating to improved financial results.”


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