Stable Operations and the Road to Dividend Resumption
Ainsworth Game Technology, the Australian slot machine manufacturer, aims to restore dividends next year as the company’s operations stabilize in the aftermath of the pandemic. During the company’s 2023 Annual General Meeting, non-executive Chairman Danny Gladstone announced that Ainsworth has focused its resources on achieving full production capacity in 2023 while also considering the resumption of dividends in the near future.
Gladstone stated, “Given the current economic uncertainties and supply chain challenges, we believe that increasing working capital levels to ensure production continuity is essential for achieving the projected sales in 2023.”
“Once these conditions stabilize, and operational requirements can be reliably determined, the Board will fulfill its commitment and consider restarting dividend payments to shareholders.”
Emphasizing Research and Development Investment
In his address to investors, Ainsworth’s CEO, Harald Neumann, highlighted the company’s research and development (R&D) investments, including the launch of two new studios in North America. These new studios, led by experienced industry professionals, are expected to bring more creativity and diversity to the company’s current product offerings.
Neumann expressed, “These new studios will enhance the competitiveness of our products and provide greater value to our customers. We have developed a comprehensive product roadmap and strategies to enhance game performance, aiming for sustainable long-term success in global markets. The ability to rapidly bring new products to market and deliver better results for our customers is critical to our long-term success.”
Market Performance and Growth Strategies
Ainsworth acknowledged the underperformance in key markets in recent years and highlighted the need to increase the output of its R&D investments. The company aims to enhance product competitiveness and provide more value to customers through these initiatives.
Revenue Growth in North America and Latin America
Ainsworth’s financial performance is expected to improve, with pre-tax profits estimated to be around AUD 20 million (USD 13.3 million) for the six months ending June 30, 2023. The company attributed this growth primarily to strong revenue increases in the North American and Latin American markets.
Overall, Ainsworth Game Technology’s plans to restore dividends, stabilize operations, and increase research and development investments reflect the company’s commitment to long-term growth and value creation for shareholders. By adapting to market challenges and focusing on innovation, Ainsworth aims to strengthen its position in the global gaming industry.