Australia-based slot machine maker Ainsworth Game Technology reported year-on-year declines in both sales and profitability in the six month period ending December 31.
Total revenues stood at A$107.3 million, which was a 9 percent decline. Losses after taxes were -A$3.8 million, compared to a profit of A$12.1 million the previous year.
The regions which suffered the poorest results were Asia and Europe, where revenues were down by 51 percent. However, looking forward the company said it would be “leveraging our strategic partnership with Novomatic to drive additional revenues in new markets within the region.” Despite the disappointing results, the CEO’s address anticipated that Ainsworth would return to profitability in the second half, and that the FY20 full year results would also record a profit.
In his Thursday remarks, Lawrence Levy Ainsworth Game CEO noted that a company loan facility with Australia and New Zealand Banking Group Ltd had been “initially reduced to AUD60 million and has been restructured, with previous covenants being replaced with maintenance of minimum liquidity levels and quarterly sales targets”.
Mr Levy gave the commentary in an address to shareholders for the group’s annual general meeting on Thursday, outlining for the most part the past fiscal year’s performance.
Mr Levy nonetheless added: “We remain focused on ensuring that our liquidity and balance sheet strengthen during this challenging time.”
In commentary filed last month, Danny Gladstone, the group’s chairman, had said the firm would not reinstate dividends for shareholders until the group’s “markets become more predictable”.