ATG’s H2 Profits Were Beset by Headwinds

Ainsworth Game Technology (ATG), an Australian slot machine manufacturer, has published a preliminary H2 report, highlighting mixed financial results for the period. Despite the negative effect of certain setbacks, the company remained bullish on its longer-term performance.

ATG’s Profits from NA Declined by 20% Quarter-on-Quarter  

In its report, ATG said that it anticipates H2 profit before tax of AUD 21.5 million ($14.3 million). This figure would mark a noticeable decrease from the AUD 23.2 million reported in the prior-year period.

While ATG noted that it expects growth of 9% in terms of overall revenue for the year, it noted that it expects the H2 figure to decrease significantly. According to preliminary forecasts, ATG’s H2 revenue could decrease by as much as 11% from AUD 152.1 million in H2 2025.

ATG is bracing for a significant blow to its profitability, saying that its H2 profits could reach AUD 7.6 million ($5 million), down from AUD 13.9 million in the first half of the year.

The projected decrease was primarily attributed to a decline in ATG’s business in North America, which offset favorable performance in Latin America. ATG said that its H2 revenue from the former region could decrease by as much as 20% compared to H1. This is due to a reduction in installed units, unit yields and H2 unit sales.

The APAC region’s results were mostly consistent with H1, while the LATAM region experienced a slight growth, according to ATG.

While these figures are preliminary, based on management forecasts and subject to closure and audit procedures, they still reflect some major concerns and setbacks the business is facing.

ATG to Use Its Secured Bank Loan Facility

In the meantime, ATG’s majority shareholder, Novomatic, failed to acquire the rest of the Australian company and take it private for the second time this year. The first attempt failed to go through due to opposition from other major investors, including members of the Ainsworth family.

In any case, ATG confirmed that it will have to resort to using its secured bank loan facility with Western Alliance Bancorporation to fund short-term working capital requirements. At the same time, the company will continue to advance its research and development, which is expected to make up 17.5% of ATG’s total revenue for the current year.