Ainsworth Game Technology has issued an updated financial outlook for the 12 months ending 31 December 2025, advising that it anticipates a non-cash goodwill impairment of AU$43.1m arising from the underperformance of its North American cash-generating unit.
The impairment relates to goodwill created through the acquisitions of Nova Technologies and MTD Gaming, with weaker-than-expected results prompting a revision of growth assumptions for the North American business. According to Ainsworth, the recoverable amount of the goodwill asset has fallen below its carrying value, resulting in the expected write-down.
Alongside the impairment, the company forecasts additional one-off losses of AU$22.7m. These primarily reflect net foreign currency losses, transaction costs associated with the terminated scheme of arrangement and takeover proposals, as well as impairments of non-current assets within the online CGU.
Underlying EBITDA for FY25 is expected to be approximately AU$48m, broadly in line with the prior corresponding period. However, the underlying EBITDA margin is set to soften to 16.5% from 18.3%, pressured by lower-than-anticipated sales and increased inventory levels at year end. These factors have also strained operating cash flow.
Ainsworth noted a higher utilisation of its secured bank loan facility, with the debt-to-equity ratio rising to 24% compared with 22% a year earlier. Despite this, the impairment is not expected to impact covenant compliance for the group’s US operating subsidiary.
The company now expects underlying profit before tax, excluding currency effects and one-off items, of AU$21m, slightly below the AU$21.5m estimate issued in December. The results remain subject to completion of year-end closing and external audit procedures.
The impairment does not affect the company’s ability to meet financial covenants under its Western Alliance Bancorporation loan facility
