Ainsworth 1H25 profit tumbles 65% on forex hit despite Asia-Pacific surge

Ainsworth Game Technology (AGT) reported a 65% plunge in first-half net profit on Tuesday, hit by foreign exchange losses and one-off costs, even as strong sales in Asia-Pacific and North America lifted group revenue by a quarter.

Net profit attributable to members fell to AU$4.9 million ($3.2 million) for the six months to June 30, down from AU$14 million ($9.1 million) a year earlier. Group revenue climbed 25% to AU$152.1 million ($98.1 million), driven by the launch of the A-Star Raptor cabinet in Asia and steady demand in North America.

Foreign exchange losses of AU$8.6 million, largely from balance sheet translations linked to a weaker U.S. dollar, and AU$1.6 million in costs related to Novomatic’s takeover bid weighed on statutory profit.

Underlying profit before tax slipped slightly to AU$13.9 million, while underlying EBITDA was flat at AU$26.9 million. Gross margin narrowed to 56% from 67% due to product sales mix shifts in the Americas and a sharp fall in higher-margin online revenue.

Asia-Pacific revenue surged 81% to AU$34.6 million ($22.3 million), contributing 20% of group revenue. Unit sales rose 90% to 1,049 following the February launch of the A-Star Raptor cabinet. “The successful launch of the A-Star Raptor cabinet within domestic markets received positive feedback from our customers, similar to other markets where this product has been released,” the company said.

North America, Ainsworth’s largest market, delivered a 22% rise in revenue to AU$83.1 million ($53.4 million), supported by titles such as Triple Troves and Coin Kingdom. Latin America fell 16% due to economic headwinds and Mexican import restrictions, while online revenue slumped 45% after changes to exclusivity arrangements with Game Account Network (GAN).

Recurring connection fees from Ainsworth’s Historical Horse Racing products rose to AU$20.9 million from AU$15.9 million, partly offsetting declines in participation and lease revenue.

CEO Harald Neumann said: “We continue to execute on established strategies and capitalize on opportunities that emerge. The investments made have enabled us to upgrade our technology, hardware, and continue to improve game performance, which is expected to ensure we maintain our position in a highly competitive and consolidating market.”

The company ended the half with a net cash position of AU$1.4 million, down from AU$9.7 million at Dec. 31, 2024. Interim dividends remain suspended as AGT navigates geopolitical uncertainty and trade negotiations between the U.S. and other countries.