AGT records decline in revenue and profit

Posted:: Dec 01, 2020 15:16 Category: Asia , Casino , Posted by

AGT reported a net loss of AU$43.4m for the year ended June 30 2020, while in 2019 the company recorded a profit of AU$10.9m

Ainsworth Game Technology Ltd – the Australia-based slot machine maker – reported year-on-year decline of AUD15-million (US$11-million) in both revenue and profitability for its half year to December 31 2020 due to the pandemic. 

Ainsworth Chief Executive, Lawrence Levy, said during a Virtual AGM

“We cautiously expect the challenging market conditions experienced” up to June 30 this year, “to continue in the first half, fiscal year 2021,”. 

“As a result, for first half fiscal-year 2021, we expect to report a loss before tax for the group, excluding the impacts of foreign exchange and one-off items, of approximately AUD15 million which is in line with the company’s expectations given the effect of the September quarter,” he added. 

Ainsworth laid off 107 of its workforce in August, generating a saving of AU$10m through 67 redundancies and 40 Lawrence Levyeliminated roles. 

 However, AGT CEO said it anticipates an improved performance throughout FY 2021:

“I anticipate that FY21 will be a year of two distinct halves. Half 1 will be about safety and security through the reopening phase; Half 2 will be about recuperation and development as we enter the “new normal” phase.”

“In summary, AGT, with its well-regarded reputation, sound financial position and ongoing commitment to innovation, is well placed to benefit from industry recovery as customers’ venues reopen and capex spend increases.” 

The CEO also noted, “Our focus remains on protecting Ainsworth Game should a protracted downturn eventuate across global markets.” 

AGT reported a net loss of AU$43.4m for the year ended June 30 2020, while in 2019 the company recorded a profit of AU$10.9m. Furthermore, its sales revenue for the year was down 36% to $149.4m. 

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