Ainsworth reports a revenue and profit drop
Ainsworth Game Technology (AGT), has reported a slight drop in both its revenue and profit for the 2018 financial year, although it saw an improved performance in the second half of the year.
AGT saw its revenue decline to $256.6m, a 5.8 per cent drop on the previous year, while profit fell by 15.8 per cent to $31.9m as a result of lower results in Australia, Asia, Europe and New Zealand.
Chief Executive Officer, Danny Gladstone said: “We are pleased to deliver FY18 results slightly ahead of our upgraded guidance. 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.”
While there were some difficult markets for AGT, revenue in the Americas grew by three per cent, with North America increasing by four per cent to $105.7m and Latin America stable at $78.7m. The company’s profitability was down in both areas, declining to $40.7m and $30.6m respectively.
International sales now account for 76 per cent of the group total and Gladstone said that the company is eyeing improvements in its domestic operations.
“We are seeing encouraging early signs of improving market share in the challenging domestic market,” he said.
“In June, in New South Wales, we had 15 per cent share of new installations, more than double our average for the year. We enter FY19 with confidence of further improvements as our newly launched game titles continue to outperform house averages.”
While the results are down on last year, Gladstone said that there are signs of optimism for the year ahead.
“Strong cash flow is another pleasing feature of these results,” he said.
“Cash from operating activities increased to $18.4 million, up from $5.2 million in the prior year. This cash flow allows us to fund our technology growth initiatives, retire debt and provide returns to shareholders through dividends.
”While we recognise the intense competition we face across our markets, we are confident AGT can outperform relative to its size. We continue to invest and create new product offerings to reclaim market share in traditional Class III and II gaming markets, whilst pursuing new opportunities including the recently released Historical Horse Racing products.
“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 FY19 we expect to release a new suite of products which should assist in translating to improved financial results.”