Ainsworth Game Technology (AGI) H2 2024 earnings summary

Executive summary

• Reported profit after tax for 2024 was AUD 30.3 million, with normalized profit before tax (PBT) of AUD 23.2 million, a 44% decrease year-over-year, 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 period end was AUD 9.7 million, down from AUD 19.4 million, after settling SAT disputes and loan drawdown.

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

Financial highlights

• Total revenue was AUD 264.1 million, down 7% year-over-year, 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.

• Reported EBITDA was AUD 58.9 million, including AUD 9.6 million FX gains; underlying EBITDA margin was 18.3%, down from 20.7% in 2023.

• EPS (diluted) was 9.0 cents, down from 10.9 cents.

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

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 launch.

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

• 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.