Ainsworth Gaming Technology has paused the strategic review of its business to “optimise the company’s financial results and performance.”
Chairperson Danny Gladstone added that the company has pursued “significant development initiatives” in previous quarters which are “not fully reflective in our current financial results.”
In its trading update in February, Gladstone reported that the strategic review, conducted by Macquarie Capital, was progressing.
However, in the latest update on Thursday, he said: “As we progress through the ongoing product development cycle in coming periods, it is expected that prior investments will translate into improved financial results and provide greater opportunities to maximise shareholder value once achieved.”
AGT said in a fresh trading update that the “continued economic and political instabilities” within Latin America, specifically Argentina and Mexico, have factored into the strategic review pause.
Company revenues in the region are expected to be reduced in the first half of the 2024 financial year – approximately 13 per cent lower compared to the second half of the previous 2023 year.
The figure is expected to be 34 per cent lower compared to the prior corresponding period, AGT added.
AGT CEO Harald Neumann said: “The current economic conditions and political instability within Latin America has negatively impacted the company’s current results within this region.
“Prior periods benefited from large contributions in sales within Argentina, which have not been repeated in our current results.
“It is expected that once conditions stabilise in the region, financial results can return to past levels achieved.”
However, AGT said North America, its largest market by revenue, continues to demonstrate “positive indicators” in the first half of the financial year, “specifically in participation and lease revenue (including Historical Horse Racing (HHR)) following new installations and the expansion in the number of jurisdictions with HHR products.”
Neumann said: “I am encouraged with the progress that has been made across North America with planned product introductions expected to provide benefits in the low denomination outright sales segment within the second half of CY24.”
