Ainsworth forecasts AU$21.5m underlying profits despite VLT challenges

Ainsworth Game Technology published a trading update this morning, explaining that the company expects to hit AU$21.5m in underlying profit before tax (PBT), excluding currency and one-off items, for the 12 months ending 31 December 2025.

The underlying PBT for H2 is projected to be AU$7.6m, a 45% drop from the AU$13.9m amount earned in H1.

Revenue for the full year is expected to be 9% higher, although the revenue from H2 will likely be 11% less compared to the AU$152.1m reported in H1.

The North American markets may post 20% less revenue in H2 compared to H1, which is primarily due to distributors not repeating purchases, resulting in lower sales, and the "sales timing of VLT units."

North America also saw less installed units than expected and lower associated average yield per day.

However, markets in the Asia-Pacific (APAC) region will likely bring in the same amount of revenue across both H1 and H2.

Latin America actually saw a modest revenue increase in H2 compared to H1 - although the new gaming tax rates due to be introduced in January 2026 and "closure of venues resulting from the ongoing anti-money laundering investigations has created increased uncertainties with venue operators at the present time."

The research and development portion of the business will continue to represent 17.5% of the total FY25 revenue, while the underlying EBITDA is projected to be around AU$48m.

Ainsworth explained in the report that: "The reduced unit sales expected in H2FY25 have resulted in increased inventory holdings and the Company will utilise its secured bank loan facility with Western Alliance Bancorporation to fund these short-term working capital requirements."