Poker machine maker Ainsworth Game Technology (ASX:AGI) has delivered a net profit after tax of $52.2 million for the 2013 financial year, racking up its tenth consecutive period of revenue growth.
Domestic revenue was up 21% over the previous year to $124.4 million, while international revenue rocketed up 55% to $73.7 million. Locally, a massive jump in revenues from within Victoria of 349% propelled the Australian result, as well as an acceleration of orders and deliveries in NSW and Queensland.
South American revenues rose 77%, and now contribute 26% of the total international revenue, whole the total machine install base across the Americas has increased by 56% to 1,156.
Ainsworth has declared a final dividend of 5 cents per share, bringing the total for the year to 8 cents per share, but has room to pay our more with its current 49% payout ratio.
Despite the splendid results, bottom line profit fell 19%, as Ainsworth was forced to pay tax for the first time, compared to a $18.1 million credit in the previous financial year. Still, the handy profit means Ainsworth has a net cash position of more than $40 million at the end of June, with virtually no debt.
Competitor, Aristocrat Leisure (ASX:ALL) is suffering locally, as Ainsworth increases market share in NSW clubs. Ainsworth's market share has risen from 13% a year ago, to 17% in July 2013, while Aristocrat has gone backwards from 48% to 45%. Ainsworth is also gaining market share in Queensland, although Aristocrat still maintains a dominant market share in both states.
Foolish takeaway
Ainsworth expects further growth in 2014, and has acquired 24 acres of vacant land in Las Vegas to continue its expansion in the US. The company is forecasting at least 15% growth for the first half of the 2014 financial year, over the previous period. Gaming companies can return nice dividends to shareholders. If Tabcorp (ASX:TAH) or Tatts Group (ASX:TTS) aren't to your fancy, you might want to add Ainsworth to your watchlist.
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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned.
