Ainsworth hit by gambling downturn

Poker machine and gaming manufacturer Ainsworth Game Technology has joined others in the gambling industry in announcing a big hit from the effects of the Covid-19 coronavirus.

The Sydney company said that the virus had caused a large number of gaming and hospitality venues to close or seek to reduce visitation.

“As a result the company is seeing a reduction in expected capital expenditure from customers on gaming machines and a reduction in participation revenues in all markets.

“AGT considers it appropriate to withdraw previous (earnings) guidance.”

Last week Aristocrat Leisure withdrew its revenue and profit forecast for the year because of softer demand.

Ainsworth said it was implementing steps to ensure the safety of its employees.

Ainsworth Chief Executive Lawrence Levy said: “These are unprecedented times with our industry clearly suffering from the impact of Covid-19.

“AGT is taking steps to mitigate the financial impacts of reduced revenue.

“Our game development programmes, which are the key to AGT’s long-term sustainable profitability, remain unaffected and on-track.”

Picture: Ainsworth

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