Profit warning from pokie maker

Shares in Ainsworth Game Technology have plunged after its updated profit and revenue forecasts disappointed.

Delays to government approvals for new poker machines have sparked a profit warning from developer Ainsworth Game Technology.

The company says regulatory delays in Queensland and NSW that affected its Australian sales in the first half of the financial year had continued into the second half.

Chief executive Danny Gladstone said Queensland approvals had been expected in December, but they did not come through until March.

"So we missed the jump, and we never caught up," he told AAP.

"Some of the larger corporate customers didn't purchase what they forecasted.

"Our opposition picked up a bit of the slack on the way, from us."

Ainsworth expects its net profit for 2014/15 to be similar to the $61.6 million made in 2013/14, while revenue is likely to be about two per cent lower than in the previous year.

The company had previously forecast revenue to rise in the second half of the current year, and its shares fell sharply, dropping 21 cents, or 6.95 per cent, to $2.81.

Queensland and NSW are Ainsworth's largest domestic markets, and all regulatory approvals have now been obtained.

The company is confident new products across all Australian markets will generate growth and market share gains in the 2015/16 year.

Ainsworth's international operations are faring better.

Overseas sales remain robust, with strong momentum continuing into the second half of the current year, the company said.

Revenues from key growth markets in the Americas and Asia are on track to increase by more than 40 per cent for the full year.

"Given robust international sales and the positive outlook for domestic sales, Ainsworth expects to deliver strong organic revenue and profit growth in the 2016 full year," the company said.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world