Ainsworth Game Technology reported a steady profit before tax of $13.9 million for the first half of 2025, supported by a 25% revenue increase driven by strong North American and Asia Pacific markets.
- Profit before tax steady at $13.9 million, in line with guidance
- Revenue up 25% to $152.1 million, led by North America and Asia Pacific
- Latin America revenue declines amid economic challenges and import restrictions
- Loan facility increased to US$75 million to support growth and working capital
- Continued investment in R&D and successful launch of A-Star Raptor cabinet
Steady Profit Despite Market Challenges
Ainsworth Game Technology Limited (ASX, AGI) has delivered a stable profit before tax (PBT) of $13.9 million for the six months ended June 30, 2025, closely matching the $14.3 million recorded in the same period last year. This result aligns with the company’s market guidance and reflects resilience amid a mixed regional performance.
Revenue growth was a standout feature, rising 25% to $152.1 million compared to the prior corresponding period. This increase was primarily driven by strong demand in North America and the Asia Pacific region, offsetting headwinds in Latin America.
Regional Performance Highlights
North America remains the company’s largest market, contributing 55% of total revenue with $83.1 million, a 22% increase year-on-year. The commercialisation of new gaming titles such as Triple Troves and Coin Kingdom across multiple states has opened fresh placement opportunities. Recurring revenue streams from machine participation and lease arrangements, as well as Historical Horse Racing connection fees, continue to underpin segment profitability.
In contrast, Latin America faced a 16% revenue decline compared to the prior half, impacted by ongoing economic difficulties and import restrictions in Mexico. Despite this, recurring revenue in the region grew by 9%, suggesting some resilience in core operations. The online segment also saw a revenue drop due to changes in exclusivity agreements with Game Account Network.
Asia Pacific showed significant improvement, with revenue soaring 81% to $34.6 million, buoyed by the successful launch of the A-Star Raptor cabinet. Unit sales nearly doubled, and segment profit margins improved markedly, reflecting strong customer reception and effective product innovation.
Operational Efficiency and Capital Management
Operating costs rose modestly by 4%, but the company maintained disciplined cost control measures, particularly in research and development (R&D) and administration. R&D expenses remained steady in absolute terms but decreased as a percentage of revenue, highlighting improved operational leverage. This ongoing investment is critical to sustaining competitive product offerings in a consolidating gaming market.
On the capital front, Ainsworth expanded its loan facility with Western Alliance Bancorporation to US$75 million, up from US$50 million, to support working capital needs and strategic initiatives. Cash reserves declined to $1.4 million due to inventory build-up aimed at meeting production demands.
Looking Ahead
CEO Harald Neumann emphasised the company’s focus on leveraging technology upgrades and product development to maintain market position. With a strong pipeline of new gaming titles and hardware enhancements, Ainsworth appears well-positioned to navigate competitive pressures and capitalize on emerging opportunities.
Bottom Line?
Ainsworth’s steady profit and robust revenue growth set the stage for strategic moves amid evolving market dynamics.
Questions in the middle?
- How will ongoing economic challenges in Latin America affect future revenue streams?
- What impact will the expanded US$75 million loan facility have on growth initiatives?
- Can the momentum from the A-Star Raptor launch sustain long-term profitability?