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GAMBLING EQUIPMENT SUPPLIER'S PROFITS DIVE
22nd February, 2017 at 07:52:44
H1 fiscal 2017 profits down 40% at Ainsworth.
Gambling supply company Ainsworth Game Technology Ltd. saw its fiscal H1-2017 profits plunge 40% year-on-year to A$15.2 million this week as it posted its results for the six months ended December 31, 2016.
Investors were expecting the bad news following the company's guidance last October.
Ainsworth chief executive Danny Gladstone reported:
"Although these results are in line with our announcement last October, the reduction in profit is disappointing," he said, revealing that total sales revenue was down 14% y-o-y at A$122.7 million, and that international revenue fell 11% year-on-year to A$81.7 million due to a timing delay in the approval of new hardware and game software.
Domestic revenue also lagged - down 18% at A$41 million.
Gladstone assured shareholders that strategies were in place to halt the decline and take the company's financial performance to more encouraging levels in the second half and beyond. He forecast that full year profits will reach at least A$56 million.
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