Based on preliminary forecasts, Ainsworth Game Technology (AGT) is projecting that it will end the second half of its financial year on December 31 with a profit before tax of US$8m - $10m.
The company stated “these results reflect the positive momentum achieved across the business” with revenue expected to show an estimated growth of 12 per cent compared to the $121.4m reported in the first half year ending June 30.
All geographical regions experienced solid growth in the period apart from the digital segment which suffered an initial decline following the reduced contributions from Game Account Network following the acceleration of revenue arising from the termination of exclusivity arrangements reflected in H1 2024.
The company noted that gross margins, however, were negatively impacted compared to H1 2024. The full year margin is expected to be approximately 62 per cent compared to the reported margin in H1 2024 of approximately 67 per cent.
“The forecasted margin has been adversely affected by a range of factors,” the company said, “including product mix of products sold within LatAm, competitive market conditions and the under recovery of production variances expensed in the current period.”
“I am encouraged by the growth in revenue in the period and expect growth to continue in coming periods as we release the next suite of game offerings across our global markets,” said AGT’s CEO Harald Neumann.
“The development initiates previously undertaken are having progressive improvements in game performance within our markets. Additional game releases and hardware initiatives are expected to maintain the growth experienced in coming periods.”
