Ainsworth Makes Return To Profit In First Half Of Fiscal Year

Ainsworth Game Technology, the famous Australian gaming equipment manufacturer, has announced its results for the first half of the 2021-2022 fiscal year and the numbers show a return to profitability for the company.

The company announced it recorded a profit after tax of 9.1 Australian dollars in the six months through to 31 December 2021, a significant improvement from the loss of 50.1 million Australian dollars recorded in the same period of the 2020-2021 fiscal year.

The improved performance was mainly due to the much better performance of the company’s operations in North America and Latin America as casinos in those regions reopened following difficulties during the novel coronavirus pandemic.

Moreover, last summer Ainsworth announced it signed a long-term partnership with Caesars Entertainment, the gigantic American casino operator. The deal’s purpose was to bring the world-class video slots developed by Ainsworth Game Technology into the offering of CaesarsCasino.com, HarrahsCasino.com, and WSOP.com, online casinos that Caesars Entertainment is operating in the state of New Jersey.

The Australian company’s sales in North America increased by 33 percent year-on-year to 54.6 million Australian dollars. Most of that increase was due to boosted revenue from Historical Horse Racing sales and installations. In fact, profit from this segment went up by a staggering 88 percent.

The revenue increase in Latin America was even bigger, the total amount was 22.2 million Australian dollars, up 363 percent compared to the 4.8 million Australian dollars generated in the first half of the 2020-2021 fiscal year. Profit from this region amounted to 10 million Australian dollars, a drastic improvement from the loss of 10.2 million Australian dollars recorded in the same period of last year.

However, the company’s performance in Australia did not improve, mainly because of the continued lockdowns related to the Covid-19 pandemic. In fact, the company’s revenue in Australia went down by 13 percent year-on-year.

Nevertheless, the whole group reported a revenue increase of 39.7 percent for the six months to 31 December 2021 for a total amount of 100.7 million Australian dollars. The adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA) amounted to 24.6 million Australian dollars.

Source: . Inside Asian Gaming. February 24, 2022.