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Australia – Ainsworth delivers better than expected results

By - 30 August 2018

Ainsworth Game Technology Limited (AGT) has announced an audited Profit after Tax of $31.9m for the year ended 30 June 2018 although revenue from sales was down six per cent.

Ainsworth delivered an improved second half performance, with $23m PBT, an increase of 68 per cent on the $13.7mreported in the first half, excluding the $2.5m profit on sale of land.

Sales revenue was down to $265.6m, a decrease of 5.8 per cent, although international revenues increased to 76 per cent of the total, climbing to 82 per cent in the second half.

Revenue in the Americas grew by three per cent for the year with North America increasing by four per cent and Latin America stable. Domestic sales declined 14 per cent. Golden Cash, launched in May, boosted ship share of new installations in the primary NSW market to 15 per cent in June, more than twice Ainsworth’s average for the year

Chief Executive Officer, Mr Danny Gladstone said: “We are pleased to deliver FY18 results slightly ahead of our upgraded guidance. Our performance continues to show signs of improvement and is a direct result of the strategies implemented to expand our international footprint, invest in technology to enhance our product suite, and build our participation fleet to improve the quality of our earnings. International sales now account for 76 per cent of the group total. In North America, the cornerstone order to deliver 900 Historical Horse Racing machines to Churchill Downs Incorporated (CDI) in Kentucky in the second half was a result of investment undertaken over several years leveraging off technology acquired from Nova Technologies. Our proprietary, Historical Horse Racing system is expected to provide further opportunities in new markets, as well as scope for further collaboration with CDI.

Underpinning that performance, the total number of machines on lease and participation grew by 10 per cent to 5,852. These machines generate daily recurring revenues. In Latin America the participation fleet increased by 23 per cent.

Mr. Gladstone added: “Ainsworth’s commitment to R&D is the solution to the intense competition we face in our markets. Customers are responding well to the array of new games shown at the Australian Gaming Exhibition earlier this month with further opportunities to show case these products at the Global Gaming Expo (G2E) in Las Vegas in October 2018.

“We are seeing encouraging early signs of improving market share in the challenging domestic market. In June, in New South Wales, we had 15 per cent share of new installations, more than double our average for the year. We enter FY19 with confidence of further improvements as our newly launched game titles continue to outperform house averages.”

Mr Gladstone added: ”While we recognise the intense competition we face across our markets, we are confident AGT can outperform relative to its size. We continue to invest and create new product offerings to reclaim market share in traditional Class III and II gaming markets, whilst pursuing new opportunities including the recently released Historical Horse Racing products.

We will continue to judiciously invest our cash flow in product improvements and innovation, and sales and marketing while retiring debt and rewarding shareholders. In FY19 we expect to release a new suite of products which should assist in translating to improved financial results.”

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