Australia-listed slot machine supplier Ainsworth Game Technology Ltd said it expects first-half profit before tax for the six months to June 30 to fall sharply, citing weaker performance in North America amid softer market conditions and heightened competition.
The company said in a Friday filing that it expected profit before tax, excluding currency impacts and one-off items, of about AUD1.0 million (US$713,954) for the period, down from AUD13.9 million in the prior-year period.
Revenue is forecast at approximately AUD116 million, down 23.7 percent from AUD152.1 million a year earlier.
Ainsworth said lower revenue in the North American region was the main driver of the decline, “reflecting reduced outright sales and fewer units under gaming operations”.
“Increased competitive factors and the adverse economic conditions within North America have created initial revenue shortfalls whilst the company progresses product development to remain competitive,” the firm added.
The supplier, however, reported a better performance in its Asia-Pacific business.
“Revenue is expected to be maintained and slightly improved within the Asia-Pacific region from contributions within Australia following the release and the continued installations of the Raptor, cabinet combined with the subsequent release of cabinet variations in early 2026,” Ainsworth stated.
“The Asia-Pacific region has continued to demonstrate the improvements previously reported, contributing approximately 31 percent of total revenue compared with 23 percent in the previous-comparable-period,” the firm noted,
The company said revenue in the region is expected to increase by circa 4 percent year-on-year, “with the segment result expected to improve to 25 percent, compared with 23 percent” a year ago.
Performance in Latin America and Europe is expected to remain broadly stable, with lower revenue offset by improved margins, according to the company.
Ainsworth said investment in research and development remained a priority during the first half of 2026, with spending expected to increase by 7 percent year-on-year.
Underlying earnings before interest, taxation, depreciation, and amortisation (EBITDA) for the six-month period is forecast at approximately AUD13 million, versus AUD26.9 million in the prior-year period.
The company expects operating cash flow to remain positive at around AUD2 million, although net debt is projected to rise to about AUD14 million, from AUD11.8 million at the end of December 2025.
Ryan Comstock, recently confirmed as Ainsworth’s permanent chief executive, said “organisational changes” implemented in the latter part of 2025 had affected the first-half results.
“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,” Mr Comstock stated,
He added: “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.”
Mr Comstock said the group was reviewing “all areas of the business” aimed at reducing costs, improving product performance and “achieving market share gains across all geographical regions,” in a bid to improve results for the remainder of fiscal 2026.
