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Highlights

  • Ainsworth Game Technology designs, manufactures, develops, sells and services gaming machines.
  • In September 2024, short-term visitor arrivals increased by 7.9% YoY and short-term resident returns grew by 8.7% YoY.
  • In 1HFY24, AGI’s revenue stood at AU$121.4 million.

Ainsworth Game Technology Limited (ASX:AGI) is an ASX-listed company which designs, manufactures, develops, sells and services gaming machines and related equipment and services. The company is expected to benefit from an increase in tourism, higher disposal income and a strong labour market in Australia.

According to the data published by the Australian Bureau of Statistic (ABS) on 20 November 2024, the total wages and salaries paid by employers increased by nearly 3.9% on monthly basis in September 2024 with all the 19 industries recording a growth in salaries and wages.

The international travel data released by ABS on 12 November 2024 indicated that in September 2024, short-term visitor arrivals grew by 7.9% YoY and short-term resident returns increased by 8.7% YoY. 

Latest financial performance

In the six months ended 30 June 2024 (1HFY24), AGI’s revenue dropped to AUD 121.4 million, compared to AUD 143.6 million in 1HFY23. The revenue declined because of higher revenue contribution in FY23 from Argentina, related to resulting sales and securing import licenses, which was missing in 1HFY24.

In the reported period, EBITDA more than doubled to AUD 28.2 million YoY and EBITDA margin jumped 1300 basis points to 23% over 10% in 1HFY23. Moreover, NPAT in 1HFY24 reached AUD 14 million compared to AUD 2 million in 1HFY23.

Outlook

The company’s focus is on upgrading technology, improving game performance and organisation culture. The investment in hardware and technology upgrades is expected to drive long-term success and product development is anticipated to improve game performance further.

Additionally, measures to increase staff retention and attract top development talent highlights a sustainable growth trajectory.

Share Performance of AGI

AGI shares closed 0.68% lower at AUD 0.735 apiece on 21 November 2024. In the past one year, AGI’s share price has dropped by nearly 37.71%, while in the last three months, it has declined by 16%.

52-week high of AGI is AUD 1.45, recorded on 27 February 2024 and 52-week low is AUD 0.695, recorded on 13 November 2024.

AGI Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 21 November 2024. The reference data in this report has been partly sourced from REFINITIV.