Novomatic’s Bid Casts Shadow Over Ainsworth’s Margin Pressures and Regional Risks
Ainsworth Game Technology reported a steady half-year profit of $4.9 million on a 25% revenue increase, driven by strong domestic sales and new product launches, while navigating regional challenges and a looming Novomatic takeover bid.
- Half-year profit after tax of $4.9 million on $152.1 million revenue
- 25% revenue growth led by A-Star Raptor launch in Australia
- Stable underlying EBITDA at $26.9 million despite margin pressures
- Novomatic announces $1.00 per share unconditional takeover bid
- Regional mix – North America and Asia Pacific growth, Latin America faces headwinds
Financial Performance Overview
Ainsworth Game Technology delivered a solid financial performance for the six months ended 30 June 2025, reporting a profit after tax of $4.9 million on revenues of $152.1 million. This represents a 25% increase in revenue compared to the prior corresponding period, largely driven by the successful launch of the A-Star Raptor gaming cabinet in Australia. Despite this top-line growth, underlying EBITDA remained steady at $26.9 million, reflecting ongoing margin pressures from product mix and competitive market conditions.
Regional Dynamics and Product Innovation
North America and Asia Pacific regions were key contributors to growth, with North American revenues rising 22% to $83.1 million, supported by strong recurring revenues from Historical Horse Racing products and new installations across several states. Asia Pacific revenue surged 81%, fueled by the A-Star Raptor’s strong market reception and higher unit sales in Australia. Conversely, Latin America and Europe faced economic and regulatory challenges, including import restrictions in Mexico, which led to a revenue decline compared to the prior half-year.
Operational and Strategic Considerations
The company maintained disciplined cost management, with operating expenses rising modestly by 4%, while research and development investment remained a priority to sustain product competitiveness. Ainsworth’s global headcount increased slightly, particularly in R&D roles based in the Americas, reflecting a strategic emphasis on innovation. Inventory levels rose 14% to support production demands, contributing to a net cash position of $1.4 million at period end. The loan facility was expanded to US$75 million to potentially fund dividends under the recently announced Scheme of Arrangement.
Novomatic Takeover Bid
On the same day as the results release, Novomatic declared an unconditional takeover bid for Ainsworth at $1.00 per share. The Independent Board Committee has issued a statement and will provide further information to shareholders in due course. This development adds a layer of strategic uncertainty but also potential value for shareholders, as the company continues to execute its operational plans amid a consolidating industry landscape.
Looking Ahead
Management remains cautiously optimistic, highlighting ongoing product innovation and market expansion efforts as key to navigating competitive pressures and economic headwinds. The company’s focus on technology, culture, and product performance aims to strengthen its position against larger competitors with greater scale. Investors will be watching closely how the Novomatic bid unfolds and how Ainsworth leverages its new product momentum to drive future growth.
Bottom Line?
Ainsworth’s steady half-year results set the stage for a pivotal second half amid takeover uncertainty and competitive market pressures.
Questions in the middle?
- How will shareholders respond to Novomatic’s $1.00 per share takeover bid?
- Can Ainsworth sustain margin improvements while investing heavily in R&D?
- What impact will ongoing regulatory changes in Australia and Latin America have on future growth?
