Ainsworth Game Technology, one of Australia’s largest gaming and pokie machine providers, has reported a domestic downswing of 35 percent in the last 12 months.
Comparing year-on-year figures to 2014, Ainsworth saw its domestic takings drop to $93 million; a figure which represents just 39 percent of its total revenue. Fortunately, as a counter to this slide, international sales for Ainsworth have shown a marked improvement between 2014 and 2015.
Representing an increase of almost 50 percent, international sales of it gaming products to destinations such as North America, Europe and Asia have helped the company hit $147 million in revenue year-on-year.
Riding a North American High
Much of this international increase came courtesy of the North American market. Following the approval of licenses in US states such as Arizona, Kansas, and Louisiana, Ainsworth was able to improve its North American revenue by 42 percent, up to $82 million.
This upturn in business is one that’s expected to continue throughout 2015 and into 2016 thanks to the release of the A600 gaming machine. Released at the start of August, the machines have already been approved for use in Australia and should soon be ready for international distribution.
“Ainsworth is building momentum. Sales in the Americas are growing well. Strong contributions from new jurisdictions and the opening of our new facility in 2016 in Las Vegas will underpin our presence in these markets and drive further performance,” Ainsworth’s CEO, Danny Gladstone, told Gambling Intelligence.
Owing to this marked improvement in international markets, Ainsworth’s year-on-year profits were only hit by a 1 percent overall decrease. However, the decline of sales in Australia may pose something of a concern for the company.
Increasingly Difficult Domestic Market
Although Ainsworth has stated publically that market consolidation among its competitors has caused prices to shift, the results are far from encouraging. In fact, one of the biggest reasons for the domestic decline is the change in spending habits among corporate clients and consumers.
Continued pressure from anti-gambling pressure groups has seen a number of venues experience revenue decreases in recent months. One of the markets leading operators, Crown Resorts, is currently under threat of an investor revolt.
Earlier this week it emerged the major bond investors are concerned about the level of debt the company is notching up. This mounting debt, coupled with a desire to borrow more cash to fund various projects, has caused investors to reassess the financial risk posed by Crown.
Although the long-term prospects for casino operators aren’t in any doubt, the current assessment suggests that the market is experiencing something of a rough patch.
Fortunately for Ainsworth, its international interests have been enough to keep its overall fortunes on an even plain; however, whether this growth is sustainable over the next 12 months remains to be seen.