Australian slot machine supplier Ainsworth Game Technology (AGT) provided a trading update on Friday, warning of an expected 24% year-on-year decline in total revenue to AU$116 million (US$82.7 million) due to reduced outright sales and fewer units under gaming operations in the North American market.
Profit before tax is also seen falling from AU$13.9 million (US$9.9 million) a year ago to AU$1 million (US$713,000), based on current management forecasts.
In a filing, AGT pointed to increased competitive factors and the adverse economic conditions within North America which it said have created initial revenue shortfalls whilst the company progresses product development to remain competitive.
The challenges in North America are, AGT explained, in contrast to APAC where revenue is expected to be maintained and slightly improved following the release and the continued installations of the Raptor cabinet and the subsequent release of cabinet variations in early 2026.
As such, the APAC region is expected to contribute around 31% of total revenue compared with 23% in the prior year period, with revenue to rise by 4%.
Within the Latin America/Europe region, segment results are expected to remain broadly consistent with an anticipated 13% decline in revenue to be offset by improved segment margins.
Company-wide margins are expected to remain broadly consistent with prior periods, supported by improved operating leverage within Australia arising from increased revenue contributions, AGT explained.
The company said it anticipates underlying EBITDA excluding currency impacts to be approximately AU$13 million (US$9.3 million) compared with AU$26.9 million (US$19.2 million) in the same period last year. It also expects to generate positive cashflows from operations of approximately AU$2 million (US$1.4 million). However, increased outflows from investing and financing activities are expected to result in net debt increasing to approximately AU$14 million (US$10.0 million) compared to $11.8 million (US$8.4 million) at 31 December 2025.
“The expected results outlined above were impacted by organizational changes which occurred during the latter period of FY25,” said CEO Ryan Comstock.
“Following these changes, new sales and product strategy leadership have now been appointed within North America to ensure a more targeted approach is established to improve these financial outcomes. Our strategy reflects initiatives implemented, resulting in the improvements in Australian revenues, which is helping to offset ongoing challenging market conditions and competitive pressures across our international markets, while maintaining investment in product development.
“In response to the expected results, we continue to review all areas of the business aimed at reducing the cost base, improving product performance and achieving market share gains across all geographical regions to positively improve financial performance for the remainder of FY26.”
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