Ainsworth Expecting US$11 Million Loss For 2H20 But Revenues On The Rise

Australian slot machine developer Ainsworth Game Technology Ltd says it expects to report a loss of around AU$14 million (US$10.8 million) for the six months to 31 December 2020, although results loom significantly stronger than the first half of the year.

Providing a business update to investors on Wednesday, Ainsworth said it expects to report an underlying positive EBITDA of AU$6 million (US$4.6 million) for the period on the back of a 71% increase in revenues to AU$72 million (US$55.7 million) compared with the first half of 2020. The revenue figure represents a 33% decline on 2H19.

North America appears to have been the star performer for Ainsworth, with revenue almost doubling from AU$21 million (US$16.3 million) for the first six months of 2020 to AU$41 million (US$31.7 million) for the second half

“Improved participation and lease revenue contributed 40% of the current period’s revenue, an increase of 10% on the [prior year period],” the company said. “AGT’s Historical Horse Racing products continue to positively contribute to revenues within this segment.”

Revenue in Australia was also up 119% to AU$19 million (US$14.7 million), however Ainsworth said Latin America “continues to be adversely impacted by high COVID-19 transmission rates resulting in further government mandated closures and access restrictions to customers’ venues.”

It added, “Given the uncertainties and deferrals of purchasing decisions caused by the pandemic within this region, further reductions in revenues are expected in the short term before a return to pre-pandemic activity levels, impacting timing of expected cash flows. Based on this, the Group is reviewing the recoverable amount of the Latin American Cash Generating Unit (CGU). This review is ongoing to determine the financial impact and a material non-cash impairment charge is anticipated for the Latin American CGU.”

Ainsworth is planning to release its final results for the 2H20 period on 25 February.

(Photo: Ainsworth)

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