The Ainsworth Game Technology Ltd (ASX: AGI) share price is in focus after the company reported first-half FY26 revenue of $116.5 million, down 23% on last year, and statutory profit after tax of $1.1 million, a significant decrease from $4.9 million in the previous corresponding period.
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What did Ainsworth Game Technology report?
- Revenue: $116.5 million, down 23% from H1 FY25
- Underlying EBITDA: $17.1 million, down 36% year-on-year
- Statutory profit after tax: $1.1 million, down 78%
- Operating cashflow: $8.9 million, a $13.6 million improvement from the prior period
- Net debt: reduced to $8.5 million from $11.8 million
- No interim dividend declared
What else do investors need to know?
Ainsworth's performance reflects challenging trading conditions across all regions, including weaker consumer sentiment and increased regulation, especially in its largest market, North America. The removal of Historical Horse Racing machines in New Hampshire and a higher Mexican gaming tax also weighed on results.
Despite a dip in total machines under gaming operation, the Asia Pacific business delivered growth with strong demand for the A-STAR Raptor™ range and increasing average selling prices. The company continues to invest heavily in R&D, making up 22% of revenue, and is actively expanding its use of AI across the business.
Ainsworth recently entered a licensing agreement with Aristocrat Leisure Ltd (ASX: ALL), involving a $8.5 million payment over three and a half years, settling historical patent issues. This has resulted in a one-off provision expense of $2.3 million this half.
What did Ainsworth Game Technology management say?
AGT CEO Ryan Comstock said:
Given the challenging trading conditions, our focus has been on disciplined cost management to enhance margins, reducing debt, and improving our operating cash flow whilst also continuing our investment in R&D, and successfully launching new products in key markets.
What's next for Ainsworth Game Technology?
Looking ahead, AGT is focused on rolling out new products, including the Dragon Legacy and A-STAR Raptor™ cabinets, especially in North America and Latin America. The integration of AI in development processes is expected to boost efficiency and product quality without ramping up costs.
The company is aiming to drive revenue growth by delivering more competitive and innovative products in all markets, with a disciplined approach to financial management and cost control to create long-term value for shareholders.
Ainsworth Game Technology share price snapshot
Over the past 12 months, Ainsworth Game Technology shares have risen 11%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the sme period.
