Australian slot machine developer Ainsworth Game Technology has reported a loss after tax of AU$50 million for the six months to 31 December 2020, impacted by the deterioration of its Latin American business during COVID-19 and an AU$13 million currency translation loss. Loss before tax was AU$14 million.
However, there is light at the end of the tunnel for Ainsworth with the company reporting a 71% increase in revenues compared with the first half of 2020 to AU$72 million, Adjusted EBITDA was also positive at AU$6 million, aided by AU$5 million in government subsidies to help navigate the pandemic.
The rebound was primarily a result of Ainsworth’s Australian and North American business arms.
In Australia and the rest of the world, revenue increased 11% year-on-year and 129% sequentially to AU$26.3 million, aided by new hardware and improved performance of recently released game titles.
In North America, revenue grew 92% compared with the first half of 2020 to AU$41 million, with improved participation and lease revenue contributing to the performance.
Conversely, Ainsworth opted to record an AU$27 million one-off cash impairment on its Latin American business due to an 85% year-on-year decline in revenues. The company said a large portion of customers’ operations in Mexico, Argentina and Peru were closed due to a second wave of COVID-19 infections, with many capital expenditure commitments deferred.
Ainsworth confirmed that, given the group’s focus on liquidity and preserving shareholder funds, its dividend program would remain postponed for now.