Ainsworth Game Technology Limited 

 Long-term agreement with Churchill Downs Incorporated:Ainsworth Game Technology Limited (ASX: AGI) stock rose 2% on February 13, 2018 after the company announced a long-term agreement with Churchill Downs Incorporated in the United States. As per the agreement, AGI will initially supply at least 600 machines to CDI to be installed at the company’s newly built historical machine racing facility, Derby City Gaming in Louisville, opening fall of 2018. AGI expects to sell similar units in North America in 2HFY18 compared to the full year in FY17. Further, in second half of FY 18, AGI expects to increase the Group’s pre-tax profit, excluding the impacts of foreign currency, compared to prior corresponding period. Additionally, AGI is expected to recommence dividend in August 2018.
 
For FY17, PBT of $57.4m was 2.5% ahead of guidance. The Company delivered positive 2H PBT of $42.2m, which was an increase of 178% on the $15.2m in 1HFY2017. The segment profit for Americas was consistent at $82.3m compared to prior corresponding period. There was an increased sales contribution from Asia and Europe. Further, Novomatic contributed sales of $11.4m and segment profit of $5.5m in FY2017.
 
The group now expects its profit weighted to second half of FY18 while first half was highlighted to be impacted by regulatory delays in Australia. On the other hand, PAC-MAN WILD EDITION is said to generate recurring revenues.
 
AGI stock has fallen 12.50% in three months as on February 12, 2018 with some level of volatility and is trading at a reasonable level now. We suggest watching the developments and group’s potential in terms of turning the efforts into improved catalysts for FY18. At the moment, we give a “Hold” recommendation on the stock at the current price of $2.00

 Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.