Ainsworth Game Technology has issued a trading update revealing a challenging second half of the financial year, characterized by declining profits and revenue.
This downturn coincides with a turbulent period for the Australian slots provider, as majority shareholder Novomatic launches a renewed bid to acquire the remaining shares of the company and take it private.
According to the update, Ainsworth expects a significant slump in its H2 performance compared to the first half of the year. Pre-tax profit is projected to fall by 45.3%, while revenue is anticipated to drop by 11%.
Specifically, the company forecasts an underlying profit before tax of A7.6mforthesecondhalf,asharpdecreasefromtheA13.9m recorded in H1. Despite the rocky end to the year, the full-year revenue for FY25 is still expected to show a 9% increase over 2024 figures.
The financial instability provides a complex backdrop to the ongoing acquisition attempts by Novomatic. The Austrian gaming giant has extended its bid deadline to January after a previous attempt in the summer faced stiff opposition from key stakeholders, including the founding Ainsworth family.
Regionally, the company’s struggles were most pronounced in North America, where revenue is expected to plummet by 20% from H1 to H2.
This decline is attributed largely to the timing of Video Lottery Terminal sales and a reduction in distributor purchases. Conversely, the APAC region remained stable, bolstered by the launch of the A-Star Raptor machine, while Latin America managed a modest revenue increase despite regulatory headwinds in Mexico.
To manage inventory and working capital needs, the company plans to utilize its credit facility with Western Alliance Bancorporation.
Compounding the company’s difficulties, CEO Harald Neumann recently resigned following issues with his Nevada gaming license renewal and reports of past legal scrutiny.
