Australian supplier Ainsworth Game Technology said Monday it anticipates year-on-year revenue growth of around 6% for the six months to 30 June 2025, boosted by higher slot machine sales in its home market.
However, its plans to accept a takeover offer from majority shareholder Novomatic could be on shaky ground after the family of company founder Len Ainsworth voiced their opposition. Novomatic currently holds a controlling 52.9% stake.
According to a report by the Australian Financial Review, Kjerulf Ainsworth – the sixth son of Len and the company’s second largest individual shareholder with a 12% stake – is hatching a plan to stop the takeover with the support of his mother.
“We’ve got money to go and throw some serious punches,” he is quoted as saying. “It’s hard not to be motivated if you see two- or three-dozen shareholders all getting stiffed.”
Ainsworth responded by way of an ASX announcement in which it said it “continues to maintain its recommendation that shareholders vote in favor of the takeover scheme in the absence of a superior proposal.”
The company first revealed Novomatic’s proposal in late April which would, if accepted, see the Austrian gaming giant acquire the outstanding shares for AU$1.00 per share” – placing the value of the deal at around AU$158.6 million (US$102 million).
Ainsworth, meanwhile, outlined in a separate statement an improved 1H25 performance compared with the same period last year, largely due to improved results in Australia following the release of its new Raptor cabinet in February. The company also expects revenue in North America to remain flat year-on-year although Latam/Europe is seen declining by 14% due to import restrictions in Mexico.
Ainsworth added that it is predicting a profit before tax of approximately AU$14.0 million (US$9.0 million) – broadly in line with the AU $14.3 million (US$9.2 million) reported in the prior year period based on current management forecasts – while Underlying EBITDA should be similar to the AU$26.8 million (US$17.2 million) reported in 1H24.
“Segment margins are expected to be overall consistent with the prior period with improved operating leverage within Australia on increased revenue contributions assisting to offset lower segment margin in Latam/Europe,” the company explained. “The North American segment margin is expected to be maintained and similar to the prior half.”
Investment in research and development has been maintained and is expected to represent 17.0% of total revenue, Ainsworth added.
In comments accompanying its ASX release, Ainsworth chair Danny Gladstone, said, “The expected result outlined above is in line with our expectations and reflects previously initiated strategies undertaken, including the initial growth of Australian revenues following the launch of the Raptor cabinet, offset against ongoing challenging conditions in our international markets and an increased cost base and continued investment to support our revenue growth.”
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