Ainsworth Game Technology (AGI) H2 2024 earnings summary

Executive summary

• Statutory net profit after tax for 2024 was AUD 30.3 million, reversing a prior year loss, driven by a AUD 9.6 million foreign currency gain and absence of write-downs.

• Underlying profit before tax (excluding FX and one-offs) was AUD 23.2 million, down 44% year-over-year.

• Revenue declined to AUD 264.1 million from AUD 284.9 million, with North America contributing 56% of total revenue.

• Dividend payments remain suspended to prioritize product initiatives, liquidity, and R&D investment.

• Net cash position at year-end was AUD 9.7 million, down from AUD 19.4 million, reflecting SAT payment and loan drawdown.

Financial highlights

• Total revenue was AUD 264.1 million, down 7% year-over-year, mainly due to lower Latin American and digital segment sales.

• Underlying EBITDA (excluding FX and one-offs) was AUD 48.2 million, down from AUD 59.0 million.

• Reported EBITDA was AUD 58.9 million, including AUD 9.6 million FX gains.

• Gross margin was 61%, consistent with 62% last year.

• Earnings per share (diluted) was 9.0 cents, down from 10.9 cents.

Outlook and guidance

• EBITDA margin expected to return to historical levels in 2025 as product initiatives take effect.

• North America expected to drive future growth with new game titles, HHR expansion, and Raptor cabinet launches.

• Anticipates revenue growth in Latin America and Europe as regulatory and economic conditions improve.

• Direct online distribution post-GAN contract termination expected to restore digital revenue.

• Continued focus on R&D, product innovation, and talent acquisition to enhance competitiveness.