Australian slot machine developer Ainsworth Game Technology Ltd says it expects its trading performance for the six months to 30 June 2019 to come in below initial expectations, with profit before tax estimated to be around AU$4 million.
In an ASX announcement, Ainsworth attributed its revision to “intense competitive market pressures and delays encountered in new product approvals which were not achieved in the expected timeframes.”
Much like the second half of 2018, which saw revenue fall 2% year-on-year due to a 47% decline in the domestic market, Australia has provided a “lower than expected” contribution.
However, while delays in game approvals will impact results for the current period, Ainsworth said the approvals are now being progressively secured and are expected to translate into improved performance in 2020.
The company added that it was looking at additional opportunities to collaborate with major shareholder Novomatic, which acquired a 52% stake in Ainsworth in January 2018.