Ainsworth Game Technology reports improved performance
First half of its fiscal year brings big change from period impacted by pandemic.
Ainsworth Game Technology Limited (AGT) on Thursday unveiled financial results for the first half of its Fiscal Year 2022, a period ending December 31, 2021.
The company announced profit after tax of $9.1m for H1 FY22, a sharp upswing from a loss after tax of $50.1m for what AGT described as the heavily pandemic impacted prior corresponding period (PCP).
AGT reported a profit before tax, excluding currency impacts and one-off items, of $10m during the first half of its current fiscal year. Company officials said this result is in line with the expected profit guidance outlined at the 2021 annual general meeting, which took place in November 2021.
“Following widespread vaccination programs and increases in industry activity levels across the company’s major international markets, AGT is pleased to report an improved performance for the first half of FY22,” the company said in a statement.
Some of the key financial highlights included revenue increasing to $100.7m, up 40% from $72.1m in the PCP. Underlying EBITDA was $20.7m, compared to $1.1m in the PCP.
The company said its improved results were driven primarily by increased revenue resulting from recurring revenues on Historical Horse Racing (HHR) installations and outright sales, including the conversion to sale of 400 HHR units previously placed on participation in North America, an improvement in Latin America driven by recovery and venue re-openings, and a higher contribution achieved from the online division.
According to AGT, the North American region delivered a “strong” result with sales of $54.6m, an increase of 33% compared to the PCP. The company said the recovery it saw in H2 FY21 has continued into H1 FY22, with an increase in both unit sales and the average selling price (ASP) per unit. With a continued disciplined approach to cost control, segment profit increased by 88% and margins expanded by 1,200 basis points to 42% compared to PCP.
Operations in several countries in the Latin American region have seen signs of recovery, which the company said was driving an improved performance overall. Sales in LatAm increased “significantly” to $22.2m, an increase of 363% on the $4.8m in the pandemic affected PCP. The region returned to profitability with a segment profit of $10m, compared to a segment loss of $10.2m in the PCP.
Mexico, traditionally Ainsworth’s largest contributor to the LatAm region’s results, continues to have travel and venue restrictions in place and is expected to provide further revenue opportunities in coming periods, the company predicted.
“We are pleased to deliver an improved result for the half year, driven by re-openings and recovery in many of our major international markets,” Harald Neumann, AGT’s CEO, said in a statement. “While we can look forward to further recovery, especially in Australia and Latin America, we are actively pursuing a range of initiatives to fundamentally upgrade AGT’s game design and technology capabilities. The ability to quickly deliver new products to market that can provide sustained performance for our customers is critical to our long-term success.”
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