Ainsworth Posts FY 20 Loss

Ainsworth Game Technology has posted a net loss of $30.8 million for the fiscal year ended June 30, compared with a $10.9 million net profit for the prior year. CEO Lawrence Levy (l.) said the company has increased its R&D budget.

Ainsworth Posts FY 20 Loss

Australian slot supplier Ainsworth Game Technology posted a net loss of A$43.3 million, US$30.8 million, for the fiscal year ended June 30. The company attributed the loss, compared to a net profit of $10.9 million the prior year, to revenue losses due to the global Covi-19 pandemic. Revenue for the year was $149.4 million, down 63 percent year-on-year, due to the second-half industry shutdown.

Ainsworth CEO Lawrence Levy said on a conference call that the company has made proactive moves to speed recovery, including a 2 percent increase in research and development spending to $41.2 million.

“We continue to progress our development plans with a more targeted and innovative approach to ensure an improvement in overall game performance is achieved,” Levy said. “This is expected to ensure a greater market share within all global markets where we operate.”

Online revenue increased by 10 percent. Ainsworth said it has expanded partnerships with social game providers and launched a U.S.-based remote gaming server, “to provide complementary revenue gains within online social and real money gaming segments in future periods,” said Levy.

Ainsworth also has reduced costs and has eliminated 107 positions at an annualized saving of $10 million.

“The group has significantly bolstered its ability to develop highly competitive game content as a consequence of expanding its internal studios through the appointment of additional experienced game developers to its internal studios in Australia and Las Vegas,” the company said in a statement.