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NEWS 29 November 2017

Mixed news for AGT as it looks towards 2018

By Caroline Watson
In an update to investors, Australia-based Ainsworth Game Technology posted its financial results for the fiscal year 2017.

The casino manufacturer and supplier reported a profit before tax of $57.4m, an encouraging figure which was 2.5% ahead of expectations.

However, AGT Chief Executive Officer, Danny Gladstone said that trading for the first half fiscal 2018 had been “adversely affected by regulatory delays in Australia, lower unit sales in Asia compared to the prior calendar period and a temporary deterioration in margin in North America based on sales mix changes”.

Nevertheless, ongoing growth in international markets was positive, posting a 2% increase in revenues compared with the same period a year prior.

Novomatic, which owns a majority share of AGT, contributed to healthy growth from the rest of the world. Segment revenue was $28.1m, an increase of 5% compared to 2016, and profit was 50% higher.

The company said the Americas were a key area of focus, with sales for the second half of FY2018 expected to be promising, even though revenue in the Americas was down 3.2% in FY2017 on the prior corresponding period.

Daniel Gladstone added: “We made further progress in executing on our priorities: To grow international revenues and drive higher quality earnings.

“International revenues grew by two per cent and now account for almost three quarters of the group’s total sales and we closed the year with 5,317 units on participation, a solid 16% increase. Momentum is clearly building at Ainsworth and, with our strong second half seasonality, we have a positive outlook for FY18.”
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