Ainsworth Game Technology (ASX:AGI) said on Thursday that it expected net profit after tax (NPAT) for FY2015 to be similar to NPAT from the previous corresponding period. The report cited undesirable changes in foreign exchange rates and unit sales to the corporate market being adversely affected. Profit guidance for the year has been stated to be around $61.6m, the same profit from FY2014. The full-year profit report is expected to be released on 18 August 2015 and will be subjected to audit completion procedures.
Ainsworth noted that the trends inhibiting the company in the first half of FY2015 have persist into the second half. The game machine supplier said it continues to maintain its market position as market leader in Australia. It also said it still has strong overall product performance across its product offerings. Ainsworth had previously invested into research and development activities to increase the quantity of new product offerings across all markets. It remains confident that stagnant profits will not hold back this research.
Total revenue is also expected to decline due to the headwinds facing the company. Ainsworth expects revenue to be about 2 per cent lower than the $244.1m reported in FY2014. Despite the headwinds, the lowered revenue and profits have been partially offset by continued growth in international markets. The company expects better results in both profit and revenue in FY2016. Shares of Ainsworth are down 21c, or 6.95 per cent, at $2.81 per share. AGI has fallen 25.79 per cent in the last 12 months but is up 19.49 per cent so far this year.
Author: Matthew Dibb
Jun 04, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.