Ainsworth posts financial year loss as COVID-19 restrictions take their toll

by William Brown Last Updated
Ainsworth posts financial year loss as COVID-19 restrictions take their toll

Australian pokies manufacturer Ainsworth Gaming Technology has reported a massive loss on the back of a tough year, impacted by COVID-19 restrictions.

Inside Asian Gaming reports that the pokies supplier reported a before tax loss of A$59.2 million for the 12 months to 30 June 2021, although just A$2.6 million of that loss was recorded in the second half of the financial year.

The FY21 loss, widened from a loss of A$43 million in 2020, came despite a seven per cent increase in revenue to A$159.5 million, where gains in the North American and Australian markets offset a significant decline in Latin America.

Ainsworth said the FY21 loss would have only been just A$17.1 million if not for currency translation impacts and one-off items, with a 1H21 loss of A$18.7 million and a 2H21 profit of A$1.6 million.

Optimism ahead of venue reopenings

Adjusted earnings before interest, tax, depreciation and amortisation of A$15.5 million, up from A$5.8 million a year earlier, included EBITDA of A$1.1 million for the first half of FY21 and A$14.4 million in the second half.

According to Ainsworth’s FY21 results release, international markets contributed 76 per cent of the group’s total revenue at A$120.5 million, with revenue from North American up 23 per cent year-on-year to A$88.5 million.

The Australian region also performed well, with revenue up 38 per cent year-on-year and EBITDA by 15 per cent to A$5.4 million including increases in all states except Victoria.

Ainsworht added that despite current uncertainties around Australia due to COVID-19 lockdowns in Victoria and New South Wales, customers are continuing to invest in their gaming floors in preparation for when venues reopen.

However, revenues in Latin America fell 56 per cent in FY21 to A$18.3 million with mandated closures and restricted access in Mexico, Argentina and Peru impacting results.

Ainsworth reported a 28 per cent increase in online revenue to A$5.9 million after launching real money gaming in New Jersey in April 2020.

Ainsworth inks deal with Caesars New Jersey

The gaming company recently signed a long-term deal with Caesars Entertainment that will see a selection of its slot games featured on Caesar’s websites and casino in New Jersey.

Caesars’ online players will now have the opportunity to play the Australian company’s titles, including the QuickSpin brand of wheel games and long-time player favourite, High Denomination titles, in both land-based and online casinos.

Additional games are set to be added to the sites on a regular basis, in order to ensure players “always have access to the hottest games and innovative play styles,” Ainsworth said.

“We’re honoured to be partnering with a prestigious operator like Caesars,” Ainsworth General Manager Jason Lim said.

“This launch furthers our presence in the New Jersey market, and we’re thrilled to be live with our latest games on the Caesars sites.

“We are confident the tremendous math models and fun play mechanics will be successful and provide an entertaining experience for Caesars players.”

Ainsworth, a supplier of gaming technology in regions within Australasia, Europe, North and Latin America, is an Australian publicly listed company headquartered in Sydney, with offices in the US and Latin American.

The group announced a five-year partnership with GAN Limited in early 2021.

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