Shares of Ainsworth Game Technology Limited (ASX: AGI) have slipped nearly 6% today after the pokies machine maker warned that its full-year net profit after tax (NPAT) would remain flat compared to last year's result.
In an announcement to the market this morning, Ainsworth said that the headwinds experienced in its domestic division during the first half of the year had continued into the second half, defying management's expectations of an improvement. This is likely to see NPAT remain similar to last year's $61.6 million result, while total revenue for the period is tipped to be 2% less than last year's $244.1 million (roughly $239.2 million, by my calculations).
Pleasingly however, the company said that its weak domestic results will mostly be offset by a strong performance from its international division. International revenue hit $58.4 million in the first half, an improvement of 45% compared to the prior corresponding period, and Ainsworth said they are on track to increase by over 40% for the full year. It said that: "AGI continues to build a strong presence in these key growth markets."
The company also stated that conditions were still expected to improve in the next financial year which should help it deliver "strong organic revenue and profit growth" for the period. The stock currently trades for $2.84, representing a 26% decline over the last 12 months.
