Australian slot machine supplier Ainsworth Game Technology reported a 10% decline in revenue in the Asia-Pacific region – comprising Australia, New Zealand and Asia – to AU$19.1 million (US$13.0 million) in the six months to 30 June 2024, citing “competitive market conditions”.
According to information filed Tuesday, the period included 553 new unit sales in Asia-Pacific, albeit with an improved price of $25,900 (US$17,585). Segment profit of AU$1.6 million (US$1.1 million) reversed a loss of AU$200,000 (US$135,775) in the prior year period, with Ainsworth pointing to “higher gross margins and cost containment measures put in place throughout the current period. Positive momentum with the A- star 100 cabinet and the new games Year of the Dragon and Fortune Bull Gold have assisted to maintain improved product performance.”
The APAC result formed part of the company’s wider 1H24 results release, which saw Ainsworth generate total revenue of AU$121.4 million (US$82.4 million), led by the international market. EBITDA of AU$28.2 million (US$19.1 million) was up 101% year-on-year while profit after tax of AU$14.0 million (US$9.5 million) was 16.7%.
Ainsworth explained that international revenues for the year reached AU$104.7 million (US$71.1 million) of which North America comprised AU$67.9 million (US$46.1 million) or 65% of total international revenue. Total machines under operation internationally as at 30 June 2024 was 6,790, up from 6,623 a year earlier although down on the 7,222 units in operation at 31 December 2023.
Ainsworth CEO Harald Neumann said, “As we secure the remaining approvals of the A-Star Raptor across additional jurisdictions in conjunction with the progressive release of newly developed gaming titles, we expect the second half to provide increased revenue opportunities.
“Despite the challenging market and economic conditions within Latin America we continue to explore opportunities in this region whilst we navigate the recent hurdles which have been introduced within these markets.
“The investments we have made underpin our commitment to our stakeholders, ensuring upgrades in technology and hardware whilst maintaining the momentum of improving game performance to ensure long-term sustained success.
“Management continues to pursue and implement measures focusing on technology, development, and culture, to improve product performance, lift staff retention rates and enhance Ainsworth’s ability to attract world class development talent. I am pleased to report that we are well advanced in our strategies to ensure Ainsworth is recognized as a leading provider within the gaming industry sector.”
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