Australian slot machine supplier Ainsworth Game Technology has upgraded its guidance for the six months to 30 June 2021 on stronger than expected recovery in the Australian and North American markets.
Ahead of publication of its FY21 financial results later this month, Ainsworth said it now expects to report a profit before tax of around AU$1.6 million, increased from an expected profit of AU$1 million announced in May.
Adjusted EBITDA is forecast to be around AU$14.4 million compared to the AU$13.2 million previously advised in May, with revenue for the period of around AU$88 million. On top of the AU$72 million in revenue recorded in the first half of the financial year through 31 December 2020, FY21 revenue is anticipated to be AU$160 million.
According to Ainsworth’s guidance, Australia’s revenue contribution for the second half of the financial year will come in at AU$20 million, taking the full year result to AU$39 million – a 39% year-on-year increase.
North America’s resurgence is expected to result in a FY21 revenue total of AU$88 million, up 22% year-on-year.
However, Ainsworth has warned of potential downside risks through at least the first half of the 2022 financial year in Australia and Latin America due to the spread of the Delta variant. This includes the current lockdowns taking place in the Australian states of New South Wales and Victoria, which Ainsworth says “have created an element of uncertainty and risk associated with the timing of when operations across domestic markets will resume.”
As a result, the company will record an additional non-cash impairment charge of AU$10.3 million in the six months to 30 June 2021 against the value of these assets in the Australian, Rest of the World and Latin America Cash Generating Units.
Final results are due to be published on Thursday 26 August.
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