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 $152.1 million, driven by strong land-based sales in North America and Asia Pacific, especially following the A-STAR Raptor cabinet launch.

• Underlying profit before tax (excluding currency and one-off items) was $13.9 million, in line with the prior year, while statutory profit before tax fell to $1.6 million due to $8.6 million in foreign currency losses and $1.6 million in transaction costs related to the Novomatic acquisition.

• Underlying EBITDA was stable at $26.9 million, with margin compression to 17.7% from 22% year-over-year.

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

• NOVOMATIC AG announced an unconditional takeover bid at AUD 1 per share, with a Scheme Implementation Deed signed and further details to be provided.

Financial highlights

• Total revenue for the period was $152.1 million, up from $121.4 million year-over-year, with gross margin at 56%, down from 67% due to product mix and lower online revenue.

• Reported EBITDA was $14.6 million, down from $28.2 million year-over-year, impacted by $8.6 million in currency translation losses.

• Profit after tax was $4.9 million, down from $14.0 million in the prior year period.

• Operating costs rose 4% to $71.4 million, mainly due to higher variable selling costs.

• Inventory write-downs totaled $4.6 million due to obsolescence of older cabinet parts.

Outlook and guidance

• Management expects continued improvement in product performance and sustainable profitability, supported by ongoing investment in R&D and technology.

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

• Growth opportunities in North America are anticipated from new HHR facilities and market expansions.

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

• Management expects normalized effective tax rate for the full year to remain stable, excluding currency impacts.