Ainsworth Game Technology generated a half year Profit Before Tax, excluding currency impacts and one-off items, of $14.3m, within the upper range of guidance provided.
AGT’s Chairman Mr Danny Gladstone, commented: “I am encouraged by the investments the company
has and continues to pursue. These investments are expected to further establish the necessary
foundations to enable the development and release of new and innovative products to achieve
improvements in the Group’s financial results.”
AGT’s revenue came in at $121.4m, down 15 per cent. The Latin America/Europe segment contributed the
majority (73 per cent) of the revenue shortfall experienced in the current period. This revenue shortfall was a result of significant revenue contributions in CY23 within Argentina relating to the securing of import licenses and resultant sales which were not repeated in the H1CY24 period.
North America revenue in the current period was $67.9m, down from $68.5m last year, representing 65 per cent of total international revenue. High denomination games continue to exhibit strong performance in the United States with multiple games consistently included in Top 25 indexes reported by Eilers’ and ReelMetrics.
Development initiatives and the release of the A-Star Raptor cabinet continues to be well received by operators and after seven months was ranked 3rd in Eilers’ Top Indexing Portrait Upright Cabinet report. The success within the low and mid denomination product groupings are expected to provide market share gains with the San FaTM range of titles being consistently reported in the Eilers Top 25 Indexing New Games throughout the current period.
MTD games in South Dakota and Louisiana continued to positively contribute to the North American segment, with strong performance being maintained on Gambler’s Gold in these markets. The next generation of this product and incorporation of the successful San Fa titles with additional Keno options are currently under development and are expected to provide further revenue opportunities.
Machines under operation in North America at the reporting date were 3,030, relatively consistent with
both the PCP and Prior half (H2CY23). Additional new placement opportunities within Kansas and Texas
are expected following the introduction of legislation, as well as expansions in Alabama, New Hampshire,
Wyoming and Kentucky. Machines placed under participation and lease (including connection fees),
which generate recurring revenue, contributed 54 per cent of segment revenues. HHR products continue to perform and generate recurring revenues with 8,543 units connected to AGT’s HHR system.
Demand continues to grow for the A-STAR range of cabinets with Xtension Link and Multi-Win being consistently within the top performing products in the region. The average yield was maintained at US$12 per day with strong demand expected in the second half of CY24 assisted by the planned release of the A-Star RaptorTM cabinet. Initial installations of products within Europe are delivering strong performance results and are expected to positively contribute to this region in coming periods.
AGT’s Asia Pacific (Australia, New Zealand, and Asia) performance was impacted in the period as
competitive market conditions continued. Revenue in the region was $19.1m, a reduction of 10 per cent
on the $21.2m in the PCP. The region sold 553 new unit sales. Positive momentum with the A-star 100 cabinet and the new games Year of the Dragon and Fortune Bull GoldTM have assisted to
maintain improved product performance.
The Online segment reported revenue of $5.1m, a reduction on the $8.4m in the PCP which
reflected the acceleration of GameAccount Network (GAN) revenue in the PCP through the contract
amendment terminating exclusivity at 31 March 2024. The company has continued to pursue direct
integrations within USA, Canada and Latin American operators.
Harald Neumann, AGT’s Chief Executive Officer commented: “As we secure the remaining approvals
of the A-Star RaptorTM 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.”
Mr Neumann added: “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 AGT’s ability to attract world class development talent. I am pleased to report that we are well advanced in our strategies to ensure AGT is recognised as a leading provider within the gaming industry sector.”
