Ainsworth anticipating return to profit through June 2021

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Australian slot machine developer Ainsworth Game Technology Limited (AGT) says it expects to record a profit before tax of around AU$1 million (US$780,000) for the six months through 30 June 2021, aided by a recent land sale and rising business volumes post COVID-19.

In a business update, Ainsworth said it had recorded a gain of AU$3.3 million (US$2.6 million) from the sale of a surplus parcel of land at the Groups Nevada facility in March 2021.

However, it has also benefited from ongoing improvements in overall market conditions as the recovery from COVID-19 continues in key markets, which have assisted the Group to achieve improved revenue and profitability expectations for 2H21.

Excluding foreign exchange impacts and the Nevada land sale, Group underlying EBITDA for FY21 is expected to be around AU$19 million (US$14.8 million) of which AU$13.2 million (US$10.3 million) will have been in 2H an increase of 128% on the AU$5.8 million reported for the first half of the financial year.

Ainsworth had previously reported a loss before tax of AU$14 million (US$10.9 million) and a loss after tax of AU$50 million (US$39.0 million)for the six months through December 2020.

The company also revealed this week that is has signed a 5-year partnership with GAN Limited under which GAN will have exclusive use of current and future Ainsworth real money online games.

The US$30 million deal will supply GAN with exclusive online rights to 79 unique slots titles currently available plus a variety of new game content on a regular basis.

GAN will incorporate Ainsworths existing online operations in New Jersey as well as the planned expansions in Michigan and Pennsylvania.

The Agreement commences on 1 July 2021 with Ainsworth expecting to receive US$10 million in cash in 1H22 and a further US$20 million to be paid in cash over the remaining life of the contract.

This partnership provides Ainsworth with a significant revenue base as we continue to work to grow our digital footprint across global markets, the company said. Furthermore, it enables Ainsworth to focus on ensuring the development of quality and high performing land-based content which it can leverage into expanding online markets.