Australian slot machine provider Ainsworth Game Technology (AGT) anticipates a deficit of AU$15 million (US$11 million) for the initial six months of its 2021 financial year, as the COVID-19 outbreak persists in disrupting the land-based gaming sector.
The firm predicts the “difficult market circumstances” encountered in the latter half of the 2020 fiscal year to persist into the first half of the 2021 fiscal year, concluding December 31, 2020.
Addressing its Annual General Meeting (AGM), AGT indicated that the projected AU$15 million loss before tax and excluding the influence of currency exchange and non-recurring items aligned with projections following the “September quarter effect.”
Nevertheless, while prevailing situations in North America suggest enhanced performance anticipated for the complete 2021 fiscal year, the extensive consequences of COVID-19 in Latin America will affect commerce until the close of the 2020 calendar year, the company stated.
“I foresee FY21 consisting of two distinct periods – the initial half will center on safety and stability during a reopening phase; the latter half will focus on recuperation and expansion as we transition into a ‘new normal’ setting,” remarked AGT CEO Lawrence Levy.
“In general, AGT, with its solid standing, robust financial position, and ongoing dedication to innovation, is well-situated to capitalize as the industry rebounds, customer locations reopen, and capital expenditure recommences.”
The year 2020 proved challenging for AGT, as their earnings significantly decreased. This resulted in a $43.4 million deficit, a stark contrast to the $10.9 million gain reported the prior year. A steep 36% reduction in revenue, amounting to $149.4 million, likely contributed to this downturn.
