Ainsworth Game Technology (AGI) H2 2024 earnings summary

Executive summary

• Normalised profit before tax (PBT) for CY24 was AUD 23.2 million, down 44% year-over-year, with profit after tax at AUD 30.3 million on revenue of AUD 264.1 million.

• Underlying EBITDA was AUD 48.2 million, down from AUD 59 million in 2023, mainly due to Latin America and digital segment headwinds.

• North America contributed 56% of total revenue, up from 49% in the prior year, with strong recurring revenue and segment profit up 5% to AUD 68.2 million.

• Net cash position at year-end was AUD 9.7 million, down from AUD 19.4 million, reflecting tax settlement payments.

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

Financial highlights

• Revenue declined 7% year-over-year to AUD 264.1 million, mainly due to lower Latin American sales and digital segment reductions.

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

• Gross margin was 61%, slightly down from 62% last year.

• Recurring revenues were AUD 95.5 million, stable year-over-year.

• Translational foreign currency gains of AUD 9.6 million, reversing prior year losses.

Outlook and guidance

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

• Revenue increases are expected in CY25 across all key regions, with North America maintaining positive momentum and Latin America/Europe showing improvement.

• Raptor cabinet launch and new game titles expected to drive domestic and international growth.

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

• Continued focus on R&D and product innovation to enhance competitiveness and support long-term growth.