Ainsworth Game Technology (AGI) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 increased 25% year-over-year to AUD 152.1 million, driven by strong domestic and North America/Asia Pacific sales, especially after the A-STAR Raptor launch.

• Underlying profit before tax (excluding currency and one-off items) was AUD 13.9 million, with reported profit after tax at AUD 4.9 million.

• Statutory profit before tax fell to AUD 1.6 million from AUD 15.7 million year-over-year, mainly due to AUD 8.6 million in foreign currency losses and AUD 1.6 million in transaction costs related to the Novomatic acquisition.

• Net cash position at 30 June 2025 was AUD 1.4 million, down from AUD 9.7 million at 31 December 2024, with interim dividends suspended to preserve liquidity.

• NOVOMATIC AG announced an unconditional takeover bid at AUD 1 per share, with a Scheme Implementation Deed signed and Scheme Booklet registered with ASIC.

Financial highlights

• Revenue was AUD 152.1 million, up from AUD 121.4 million year-over-year.

• Gross margin was 56%, down from 67% year-over-year, due to product mix and lower online revenue.

• Underlying EBITDA was AUD 26.9 million, flat year-over-year, with margin compression to 17.7% from 22% due to gross margin pressures.

• Profit after tax was AUD 4.9 million, down from AUD 14.0 million year-over-year.

• Earnings per share (diluted) was 1.4 cents, down from 4.1 cents year-over-year.

Outlook and guidance

• Management expects continued improvement in product performance and profitability, with ongoing investment in R&D and talent to maintain competitiveness.

• Margin pressure is expected to persist due to tariffs and geopolitical uncertainties.

• HHR opportunities are expected to continue, though at a reduced rate, with new markets opening in Kansas, Ontario, Wyoming, and Kentucky.

• The company is focused on expanding in regulated markets and maintaining cost controls.