Lawrence Levy, group CEO of Australia-based slot supplier Ainsworth Game Technology, told shareholders last week that the supplier anticipates a loss of around AU$15 million for the second half of 2020, citing Covid-19 shutdowns and restrictions.
Levy, who delivered the news at Ainsworth’s 2020 Annual General Meeting, previously revealed a net loss after tax of AU$43 million for the fiscal year ended June 30, thanks to a 36 percent decline in sales.
Despite signs of recovery, with casinos around the world having started reopening, Levy said FY21 was shaping up as a year of two distinct halves.
“Half 1 will be about safety and security through the reopening phase; Half 2 will be about recuperation and development as we enter the ‘new normal’ phase,” Levy said.
“As a result, for 1H21 we expect to report a loss before tax for the group, excluding the impacts of foreign exchange and on-off items, of approximately AU$15 million, which is in line with the company’s expectations given the effect of the September quarter.”
Levy said the company’s priority was protecting Ainsworth in the event of a protracted downturn, noting a series of cost-cutting initiatives already implemented.
According to a report in Inside Asian Gaming, the company reduced its workforce by 107 in August, creating an annual cost saving of AU$10 million through 67 redundancies and 40 eliminated roles.
Levy noted that other cost reduction measures included fee reductions by board members, salary reductions by senior management and rent relief provided at the company’s Sydney headquarters facility by the property’s owner and company founder, Len Ainsworth. Reduced workforce hours were also put in place.
