Australia-based slot manufacturer Ainsworth Game Technology Ltd. will report an adjusted net loss before ta of approximately AUD34 million (US$24.4 million) for the fiscal year ended June 30, according to a business update the company released to GGRAsia.
The company also revealed that it is cutting 67 jobs deemed to be redundant functions—23 in Australia and 44 in the Americas—in a move expected to save AUD6.4 million annually. “In addition, 40 roles have been eliminated at a further cost saving of AUD3.8 million per annum,” business update said. Additional savings will come from executive-level employees accepting a 20 percent pay reduction for the June quarter, which will extend to the quarter ending September 30.
“Customers across all Ainsworth Game’s markets suspended operations from mid-March. Some reopenings of customers’ facilities have occurred since that time, although venues have reduced capital expenditure” due to visitor numbers “being well below pre-pandemic levels,” said the update.
In a filing with the Australian Securities Exchange, Ainsworth Chief Executive Lawrence Levy said, “While Covid-19 hit our industry hard, we moved quickly to protect Ainsworth. We took proactive measures to streamline our overheads and we are securing more flexible financing arrangements to ensure we can endure a protracted downturn.
“Ainsworth Game is now well positioned as customers across our major markets look to recover from the effects of the pandemic.”