Ainsworth hit hard by Covid-19 pandemic

Gaming manufacturer Ainsworth Game Technology continues to be hit hard by the Covid-19 pandemic with sales slowing further in the second half of 2020.

The Sydney company reported expected second half revenues of $42 million, down from $116 million in the previous corresponding period.

Preliminary unaudited figures have been delayed.

Full year results are expected to be a tiny EBITDA profit of $2.9 million on sales revenue of $149 million for the year, a fall of 36 per cent on FY19.

The net loss for the full year was $34 million.

During the year the company instituted major cost reductions as Covid-19 closed gambling facilities, especially in the United States, and sales plunged.

Executives and directors took pay cuts, the dividend was cancelled, 67 people were made redundant, working weeks for some staff were cut to two or three days a week, and a further 40 roles were eliminated.

Ainsworth CEO Lawrence Levy said: “While Covid019 hit our industry hard, we moved quickly to protect Ainsworth.

“We are now securing more flexible financing arrangements to ensure we can endure a protracted downturn.

“AGT is now well positioned as customers across our major markets look to recover from the effects of the pandemic.”

Picture: Ainsworth Game Technology

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