Ainsworth Game Technology reported a 23% year-over-year drop in first-half 2026 revenue, citing weak consumer sentiment, macroeconomic pressures and a prolonged gap in new product releases as key headwinds.
The Australian gaming equipment maker posted revenue of AUD 116.5 million for the six months ended June 30, 2026, down from AUD 152.1 million in the prior-year period. Diluted earnings per share fell to 0.3 cents from 1.4 cents, while underlying profit before tax declined 66% to AUD 4.7 million. Reported profit after tax totaled AUD 1.1 million, compared with AUD 4.9 million a year earlier.
Chief Executive Ryan Comstock attributed the decline primarily to a sharp contraction in North America, where unit sales fell to 492 units from 1,357 a year prior. He noted that a lack of compelling new single-screen releases eroded operator confidence, leading to reduced purchasing. The North American segment, which accounts for 44% of group revenue, reported AUD 51.9 million in segment revenue, a decline of AUD 31.2 million.
Asia Pacific delivered a 7% revenue increase to AUD 36.9 million, supported by a 25% segment profit margin. Latin America and Europe revenue fell 20% to AUD 25.4 million, though segment profit margins improved to 26%. The region’s performance was constrained by Mexico’s gaming tax hike, which raised rates from 30% to 50% effective January 1, contributing to a reduction in installed units to 3,284 from 6,091 at year-end 2025.
Gross profit declined to AUD 72.7 million from AUD 84.8 million, but gross margin expanded by 600 basis points to 62%. Underlying EBITDA fell 36% to AUD 17.1 million, with an underlying EBITDA margin of 14.7%, down from 17.7%. Operating cash flow improved to a positive AUD 8.9 million, while net debt decreased to AUD 8.5 million.
The company suspended dividends to preserve liquidity and fund product development, according to Chief Financial Officer Lynn Mah. R&D spending rose to AUD 25.8 million, representing 22% of revenue, up from 16% in the prior period.
Looking ahead, Ainsworth plans to expand its Dragon Legacy family into Class II and historical horse racing markets in September, alongside the rollout of the A865 model in Latin America and North America. Additional titles scheduled for release in the third and fourth quarters include Train Heist, Bubble Up, Digging for Dollars, and Five Fortunes: Duck and Cover.
