Australian slot machine supplier Ainsworth Game Technology (AGT) has reported a 78% year-on-year decline in net profit to AU$1.1 million (US$790,000) for the six months to 30 June 2026, with the company citing challenging economic conditions and regulatory changes for the fall.
According to information filed Wednesday, first half revenue fell by 23% year-on-year to AU$116.5 million (US$83.6 million), with EBITDA down 30% to AU$10.2 million (US$7.3 million) and Underlying EBITDA dropping 36% to AU$17.1 million (US$12.3 million).
This, the company explained, reflects challenging trading conditions experienced across all geographic markets with weak consumer sentiment and tough macro-economic conditions prevailing. It also pointed to a lack of compelling new product offerings in the key North American market as well as regulatory changes such as the increase in Mexican gaming tax and further removals of Historical Horse Racing (HHR) machines in New Hampshire due to changes in regulations that were introduced in prior periods.
Notably, the only region in which AGT saw 1H26 growth was Asia-Pacific, where revenue grew by 7% year-on-year to AU$36.9 million (US$26.5 million) thanks to the release of the A-STAR Raptor cabinet. APC ultimately contributed 32% of group-wide revenue – not far shy of the 44% generated in North America.
That North American market saw revenue fall 38% year-on-year and 24% on 2H25 to AU$51.9 million (US$37.2 million). Despite the lower revenue, AGT said segment profit margin for the region increased 11%, driven by a tariff refund received under the International Emergency Economic Powers Act (IEEPA) and a higher contribution from recurring revenue during the period.
In Latin America and Europe, revenue fell by 20% to AU$25.4 million (US$18.2 million) with sales in key markets across the region lower than expected, reflecting the impact of geopolitical events.
The Online segment reported revenue of AU$2.3 million (US$1.7 million), also a reduction on the AU$2.8 million (US$2.0 million) generated a year earlier.
“Given the challenging trading conditions, our focus has been on disciplined cost management to enhance margins, reducing debt and improving our operating cash flow whilst also continuing our investment in R&D, and successfully launching new products in key markets,” said AGT’s CEO, Ryan Comstock.
“A lack of compelling new product offerings in recent times in our largest market – North America – has adversely impacted our performance. We have taken steps to address this and are focussed over the next six months on a product roadmap with a consistent release cadence off the back of the Dragon Legacy.
“We are encouraged by the strong reception to our new product releases and expansions. Of note has been the release of our A-STAR Raptor range in a single-screen version in the Asia-Pacific market.
Our expansion of the A-STAR Raptor portfolio in this market with the addition of Double Dragons and Loot Express has been strong with both offerings launching at more than twice floor average and continuing to perform above floor average.
“Looking ahead our focus remains on driving revenue growth across all our markets by delivering innovative and competitive products for which there is strong demand coupled with disciplined financial management to deliver shareholder value.”
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