Ainsworth 1H profit down 78pct, but revenue in Asia Pacific grows

Slot-machine maker Ainsworth Game Technology Ltd reported a profit after tax of AUD1.1 million (US$787,883) for the first half of 2026, down 77.6 percent from the prior-year period. Revenue for the six months to June 30 fell 23.4 percent year-on-year to AUD116.5 million, the Australia-listed firm said in a Wednesday filing. International markets accounted for 70 percent of group revenue during the period. The company attributed the weaker revenue to “challenging trading conditions” across its geographic markets, including weak consumer sentiment and macroeconomic conditions. Ainsworth also cited a “lack of compelling new product offerings” recently in North America, its largest market, as well as a higher gaming tax in Mexico and further removals of historical horse racing (HHR) machines in New Hampshire due to regulatory changes. First-half underlying earnings before interest, taxation, depreciation, and amortisation (EBITDA) declined 36.4 percent year-on-year to AUD17.1 million. The underlying EBITDA margin was 15 percent, versus 18 percent a year earlier. Underlying profit before tax – adjusted for currency impacts and significant one-off items outside ordinary business activities – fell 66.2 percent year-on-year to AUD4.7 million. Ainsworth chief executive, Ryan Comstock, said the company had focused on “disciplined cost management to enhance margins,” as well as on “reducing debt, and improving” operating cash flow, while continuing to invest in research and development and launching new products. He acknowledged that a lack of “compelling” product offerings recently in North America had “adversely impacted” the group’s performance. Though he added that Ainsworth was taking steps to address the issue through its “product road map”. Ainsworth’s Asia Pacific segment – comprising Australia, New Zealand and Asia – bucked the wider decline, with revenue rising 6.7 percent year-on-year, to AUD36.9 million. The segment represented 32 percent of group revenue, the company noted. The region recorded 1,087 gaming machine sales during the first half, compared with 1,049 a year earlier. Segment profit margin increased by 2 percentage points year-on-year to 25 percent. Ainsworth said the performance was supported by the further rollout of its A-STAR Raptor range, including a single-screen version. The group’s “Double Dragons” and “Loot Express” titles “launched at more than twice” the respective casino-floor average, and continued to “perform above floor average,” according to the firm. North America generated revenue of AUD51.9 million, down 37.6 percent year-on-year, and accounted for 44 percent of group revenue, compared with 55 percent in the corresponding period of 2025. The number of machines placed under participation and lease in North America stood at 2,360 as of June 30, versus 2,961 a year earlier. Ainsworth said its “Dragon Legacy” product family, launched in late May, had shown encouraging early performance. First-half revenue from Latin America and Europe fell to AUD25.4 million, from AUD31.6 million a year earlier, while the online segment – Ainsworth Interactive – generated AUD2.3 million, compared with AUD2.8 million in the first half of 2025.