The CEO of Australian slot machine firm Ainsworth Game Technology Limited (AGT) says the company will push ahead with its game development programs despite concerns that expected profitability in FY20 may no longer be feasible.
Ainsworth issued an update on operations on Monday following recent developments in its major domestic and international markets, with Australia enforcing the closure of all casinos, pubs and clubs and hundreds of casinos across the United States also shutting down for a month.
As a result, the developer has withdrawn its previous guidance on the back of a reduction in expected capital expenditure from customers on gaming machines and a reduction in participation revenues in all markets.
However, CEO Lawrence Levy said Ainsworth would continue to invest in its game development resources.
“These are unprecedented times with our industry clearly suffering from the impact of COVID-19,” Levy said. “AGT is taking steps to mitigate the financial impacts of reduced revenue. Our game development programs, which are the key to AGT’s long-term sustainable profitability, remain unaffected and on track.”
Ainsworth added that it is implementing a range of socially responsible measures to ensure the safety of its employees as well as cost reduction initiatives aimed at mitigating the financial impact of COVID-19.