Ainsworth Game Technology Reports Growth in International Business
Australian gaming supplier, Ainsworth Game Technology, has released their full year financial report for the year ending June 30, 2016. The company has reported a drop in profits, despite growth in their International business.
The company reported an annual profit drop of 21 percent to $55.7 million compared to the same period the previous year, although revenue rose 19 percent to $285.5 million over that period. Revenue from their local business dropped 12 percent to $81.5 million which was largely attributed to a drop in business activity, as well as corporate customer and currency and pricing pressures.
Profit after tax, excluding currency fluctuations, was $52.4 million, which was in line with the previous year’s profits of $52.5 million.
“Excluding the effect of foreign exchange gains, the FY16 (fiscal year 2016) results were solid,” announced Danny Gladstone, chief executive of Ainsworth.
International revenue increased 38 percent to $204 million, with growth in International markets representing 71 percent of total revenue, an increase of 10 percent from the previous year. This was largely attributed to Ainsworth’s acquisition of Nova Technologies, which gave them access to new markets in the Americas.
Ainsworth acquired Nova for $38 million in January 2016 with the acquisition doubling the number of poker machines that the company had in North America to more than 2,600. Ainsworth announced that they were pleased with the contribution made by Nova to the year’s results.
“Since completion, the business has been fully integrated and continues to deliver strong growth,” the company reported. “There is scope to expand into new territories both in the US and beyond.”
Founder of the company, Len Ainsworth, recently sold 52.5 percent of his stake in the company to Novomatic, with the sale approved in June.
March 30, 2017