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Ainsworth Game Technology is expecting a notable decline in revenue and profit in the 6 months to 30 June, with the Australian slot machine supplier pointing to weaker trading in North America. The company said a 24% year-on-year fall in total revenue is now expected, while profit before tax is also forecast to drop sharply from the prior-year period.
North America Weighs On Sales
In a Friday trading update, AGT said total revenue is expected to reach AU$116 million, or US$82.7 million, compared with the same period last year. The company linked the decline to reduced outright sales and fewer units under gaming operations in North America, where it has been facing softer conditions.
Profit before tax is now seen at AU$1 million, or US$713,000, down from AU$13.9 million a year earlier. AGT said competitive pressure and adverse economic conditions in North America have created early revenue shortfalls while the company continues developing products to stay competitive.
Other Regions Hold Steadier
The picture is different in APAC, where AGT expects revenue to be maintained and slightly improved. The company said this reflects the release and continued installation of the Raptor cabinet, along with cabinet variations launched in early 2026.
It is expected that APAC will contribute 31% to revenues compared to 23% contribution recorded during the previous year, with revenues rising 4%. Revenue contribution in Latin America and Europe is likely to remain relatively constant, with a 13% decrease in revenue being balanced out by improved margins.
AGT also said company-wide margins are expected to stay broadly in line with previous periods, helped by improved operating leverage in Australia as revenue contributions there increase. That support is expected to soften some of the pressure coming from international markets.
Earnings And Cash Flow Outlook
The company said underlying EBITDA, excluding currency impacts, is expected to be about AU$13 million, or US$9.3 million, compared with AU$26.9 million, or US$19.2 million, in the same period last year. It also expects to generate positive cash flow from operations of around AU$2 million, or US$1.4 million.
Despite that, AGT said increased outflows from investing and financing activities are likely to push net debt higher to about AU$14 million, or US$10.0 million, compared with US$8.4 million at 31 December 2025. The company’s outlook shows a business that is still generating cash from operations but facing heavier pressure from investment needs and financing costs.
Management Response
CEO Ryan Comstock said the expected results were affected by organizational changes made during the latter part of FY25. He said new sales and product strategy leadership has now been appointed in North America to help create a more targeted approach to improve financial outcomes.
Comstock also said the company’s strategy reflects initiatives that have already helped lift Australian revenues, which in turn are offsetting difficult market conditions and competition in international markets. He added that AGT is still investing in product development while reviewing all areas of the business to reduce costs, improve product performance, and gain market share across all regions for the rest of FY26.
Source: Inside Asian Gaming
