Ainsworth Gaming Corporation (AGC) predicts a deficit of $15 million Australian dollars ($11 million in American currency) for the initial six months of its 2021 budget year, concluding December 31, 2020. This shortfall results from the continuing effects of the COVID-19 crisis on traditional, physical gaming establishments.
This Australian gaming device provider anticipates that the “difficult market circumstances” encountered in the latter half of 2020 will persist into the first six months of 2021.
During its Yearly Shareholder Meeting (ASM), the provider declared a consolidated Earnings Before Interest, Taxes (EBIT) deficit of $15 million AUD (excluding currency fluctuations and non-recurring expenses). This aligns with the company’s projections following the “September quarter consequences.”
Nevertheless, the provider expressed optimism for enhanced performance throughout the entire 2021 fiscal year, considering the present North American climate. Conversely, the extensive COVID-19 surges in Latin America are projected to influence commerce through the remainder of 2020.
“I foresee FY21 presenting two distinct periods. The initial half will center on solidifying our standing during a phased reopening process; the latter half will focus on recuperation and expansion as we enter the ‘next normal’,” stated AGC Chief Executive Officer Laurence Levy.
“Broadly, AGC, with its solid standing, robust financial position, and ongoing dedication to advancement, is well-situated to capitalize on the industry’s resurgence as client venues reopen and capital expenditures rise.”
The fiscal period concluding June 30, 2020, proved challenging for AGT, as they recorded a substantial deficit of $43.4 million AUD. This contrasted sharply with the $10.9 million AUD gain reported in the preceding year. A steep 36% plunge in earnings, which plummeted to $149.4 million AUD, was identified as the primary driver of this decline.