Ainsworth 2023 rev up 17pct, flags loss on currency impacts
Australia-listed slot machine maker Ainsworth Game Technology Ltd reported revenue of AUD284.9 million (US$185.1 million) for the 12 months to December 31, up 17.0 percent from 2022.
The company however reported a net loss after tax of AUD9.0 million for full-year 2023, compared to the net profit after tax of AUD10.2 million in the prior year.
“The current year results were adversely impacted by foreign currency loss of AUD21.5 million recorded in calendar year 2023, compared to AUD2.6 million gain in calendar year 2022,” the firm said in a Thursday filing to the Australian Securities Exchange.
Company-wide earnings before interest, taxation, depreciation and amortisation (EBITDA) were AUD18.9 million in 2023, down 31.0 percent year-on-year.
No dividend was declared for the latest reporting period.
Ainsworth said a “strong performance” in the second half of 2023 pushed its full-year normalised profit before tax – excluding currency impacts and one-off items – to AUD41.5 million, an increase of 10.4 percent compared the previous 12-month period. Underlying EBITDA in 2023 was AUD57.8 million, compared to AUD55.8 million in the prior year.
For the second-half of 2023, Ainsworth reported a net profit after tax of AUD2.7 million, on revenue of AUD124.1 million. EBITDA for the six months to December 31 stood at AUD14.9 million.
“This resulted in a second half normalised contribution in calendar year 2023 of AUD18.3 million, in line with the AUD18.0 million market guidance provided,” it stated.
International revenues in 2023 increased by 23.7 percent year-on-year, to AUD245.1 million, accounting for about 86.0 percent of the group’s aggregate revenue. North America revenue in the reporting period was AUD140.4 million, representing 57.3 percent of total international revenue.
Revenue in the Asia Pacific segment – consisting of Australia, New Zealand and Asia – stood at AUD48.8 million, representing 19.9 percent of total international revenue. It was up 2.3 percent in year-on-year terms.
Profit in this segment however fell 33.3 percent year-on-year, to AUD3.4 million. The company said that was due to “ongoing inflationary pressures, fixed cost base with lower revenue contribution and weakening of the Australian dollar against the U.S. dollar”.
Ainsworth said an “increase in unit sales related to Asia” following “market recovery post pandemic, offset the reduction of sales from Australia”.
It added: “A change in sales distributor and new venue openings specifically in Philippines is expected to drive revenue in this market in future periods.”
In October Ainsworth said it had reached a “significant milestone in the Asian gaming sector,” with installation of 24 of its A-Star cabinets at the City of Dreams Manila gaming resort in the Philippines.
The gaming supplier said it had 7,222 machines under operation as of December 31, an increase on both the 6,623 units as of June 30, 2023 and the 6,517 as of December 31, 2022.
Harald Neumann, Ainsworth’s chief executive, said in prepared remarks: “The investments we have made have enabled us to upgrade our technology, hardware and improve game performance which are expected to deliver further improvements in our financial results and ensure our long term sustained success,” he added.
In Thursday’s filing, Ainsworth’s chairman Danny Gladstone also commented on the group’s previously-announced “strategic review”, with Macquarie Capital engaged as the firm’s financial advisor.
He stated: “Following the announcement made in November 2023 … a strategic review of all potential opportunities has progressed in the period. This strategic review encompasses a number of potential alternatives to maximise shareholder value. While there is no assurance that any transaction will result from this strategic review, we will continue to keep the market updated.”
