Australian slot machine developer Ainsworth Game Technology has cited regulatory delays and local competition as the reason for a half-year profit slump of 38 percent through the six months to 31 December.
Ainsworth this week announced that it had made net profit of AU$20.6 million for the half, down from AU$33.1 million year-on-year. However, the company remains confident of a much-improved performance in the second half of the financial year.
“Although these results are in line with our announcement last October, the reduction in profit is disappointing,” said CEO Danny Gladstone. “Our results were impacted by competitive domestic markets and temporary delays in North American approvals.
“We have implemented strategies to correct these initial reductions in unit volumes and margins and expect to deliver an improved financial performance going forward.”
Ainsworth is predicting pre-tax profit of around AU$56 million for the financial year, down from AU$70.4 million the previous year. But Mr Gladstone believes the recent opening of its new headquarters in Las Vegas and Ainsworth’s December acquisition of Class II slot machine supplier Nova Technologies will aid a recovery.
