Ainsworth Game Technology trading and strategic review update

Ainsworth Game Technology Limited (AGI) has released a trading and strategic review update, forecasting a reduction in Profit before Tax for the first half of the financial year ending 31 December 2024 (H1CY24) to be in the range of $13 million to $15 million, down from $18 million reported in the second half of CY23. The company's largest market, North America, has shown positive indicators, while economic and political instabilities in Latin America are expected to result in reduced revenue in this region.

Executive commentary on trading and strategic review update

AGT's Chief Executive Officer Mr. Harald Neumann expressed encouragement with the progress made across North America, expecting planned product introductions to benefit low denomination outright sales segment within the second half of CY24. He also acknowledged the negative impact of current economic conditions and political instability within Latin America on the company's results in this region. AGT's Chairperson Mr. Danny Gladstone commented on the decision to place the Strategic Review on hold, citing the current market conditions in Latin America and short-term timing delays of product releases as reasons for the hold.

Summary of Ainsworth Game Technology's trading and strategic review update

Ainsworth Game Technology expects a reduction in Profit before Tax for the first half of the financial year ending 31 December 2024, primarily due to economic and political instabilities in Latin America. The company has seen positive indicators in North America, with new product introductions expected to drive benefits in the low denomination outright sales segment within the second half of CY24. The Board has decided to place the Strategic Review on hold to optimize the company's financial results and performance, considering the current market conditions in Latin America and short-term timing delays of product releases. The company anticipates that prior investments in development initiatives will translate into improved financial results in the coming periods, providing greater opportunities to maximize shareholder value once achieved.