Ainsworth anticipates a 93% profit decline as North America faces difficulties

(AsiaGameHub) –   Ainsworth Game Technology, the Australian developer of gaming machines, projects a pre-tax profit of approximately AU$1.0 million ($710,000) for the half-year ending 30 June 2026, representing a steep decline from the AU$13.9 million ($9.93 million) recorded during the equivalent period in the prior year.

According to an ASX announcement released on 22 May 2026, the firm anticipates total revenue for the half-year to reach about AU$116 million ($82.86 million). This marks a 24% drop compared to the AU$152.1 million ($108.64 million) generated a year prior, and falls short of the AU$138.7 million ($99.07 million) achieved in the final six months of 2025.

The manufacturer attributed the decline primarily to underperformance in North America, a market impacted by decreased direct sales, a reduction in active gaming operations units, intensifying competition, and macroeconomic challenges.

Conversely, the Asia-Pacific market is projected to see a year-on-year revenue increase of about 4%, bolstered by the rollout of the Raptor cabinet and its new iterations launched in early 2026. This region is set to contribute approximately 31% of overall revenue, up from 23% previously, with profit margins anticipated to rise from 23% to 25%.

Combined revenues from Europe and Latin America are predicted to fall by roughly 13%, though profit margins within these territories are also projected to strengthen.

Excluding foreign exchange fluctuations, underlying EBITDA is estimated at around AU$13 million ($9.29 million), down from the AU$26.9 million ($19.21 million) reported in the same period of the previous year.

The company’s net debt is projected to climb to approximately AU$14 million ($10 million), compared to AU$11.8 million ($8.43 million) recorded on 31 December 2025. Additionally, investment in research and development is expected to grow, accounting for about 22% of overall revenue, up from 18.5% in the latter half of 2025.

Chief Executive Officer Ryan Comstock commented:

Our current approach highlights the execution of strategic measures that have boosted our Australian revenues. This growth is helping mitigate the persistent market difficulties and intense competition we face globally, all while we continue to fund our product development pipeline.

He further noted that following structural adjustments in late FY25, new leadership has been appointed to oversee sales and product strategy in North America.