Ainsworth Game Technology Limited anticipates posting a profit before tax of approximately AU$14.0 million for the first half of calendar year 2025, in line with the AU$14.3 million achieved during the same period last year. The Australian gaming manufacturer attributes this consistent profit to a robust domestic performance, particularly after the successful February release of its Raptor cabinet.

The company’s half-year trading update (pdf) for the period ending 30 June 2025 indicates an estimated 6% rise in revenue compared to the AU$142.7 million recorded in the previous half-year ending 31 December 2024. This improvement is largely driven by increased sales in Australia.

However, the outlook is not uniformly positive across all regions. Ainsworth reports that North American revenue is projected to remain flat on a constant currency basis, maintaining performance levels seen in the second half of 2024. Meanwhile, the Latin America and Europe segment is expected to see a significant revenue decline of approximately 14%, a consequence of ongoing import restrictions in Mexico. Despite these headwinds, recurring revenue from gaming operations in the region has helped soften the impact.

The company’s segment margins have generally held steady. Gains in operating leverage within Australia have counterbalanced the downturn in the LatAm/Europe segment. North American margins are expected to remain consistent with the previous half. Underlying EBITDA, excluding the effects of currency fluctuations, is forecast to remain on par with the AU$26.8 million reported in the first half of 2024.

Ongoing R&D Commitment and Strategic Positioning

Investment in research and development continues to be a priority, representing around 17.0% of total revenue—a slight uptick from the 16.6% recorded in the previous half-year. This sustained focus supports the company’s efforts to bolster future revenue and product innovation.

At the recent Global Gaming Expo (G2E) Asia 2025 in Macau, Ainsworth’s Asia Pacific President Troy Primmer highlighted the broader regional rollout plans for the Raptor cabinet, noting its regulatory approval is currently underway in the Philippines and progressing in other Asian markets. “We launched that [the Raptor cabinet] in Australia in February, and it’s been a resounding success,” said Primmer.

Takeover Proposal by Novomatic Sparks Internal Discontent

While operational performance remains relatively strong, Ainsworth is navigating turbulent waters regarding corporate ownership. The company is facing increasing scrutiny over a proposed acquisition by majority shareholder Novomatic AG, which currently holds 52.9% of Ainsworth’s shares.

In April, Novomatic unveiled a plan to purchase the remaining shares of Ainsworth for AU$1.00 per share, valuing the deal at approximately AU$158.6 million. Although Ainsworth’s Independent Board Committee continues to recommend that shareholders support the proposal—provided no superior offer materializes and the independent expert deems it to be in shareholders’ best interests—opposition is mounting.

The family of founder Len Ainsworth, particularly his sixth son Kjerulf Ainsworth, is leading a campaign to block the transaction. Holding a 12% stake and claiming support from his mother, Kjerulf has criticized the proposed deal, suggesting it undervalues the company and risks shortchanging minority shareholders. “We’ve got money to go and throw some serious punches,” he stated in a report by the Australian Financial Review. “It’s hard not to be motivated if you see two- or three-dozen shareholders all getting stiffed.”

Despite these objections, Ainsworth reiterated its recommendation in an ASX filing, maintaining that shareholders should vote in favor of the scheme unless a better alternative emerges.

Outlook and Strategic Implications

Chairman Danny Gladstone described the expected results as consistent with internal forecasts and aligned with the company’s strategic roadmap. “The expected result outlined above is in line with our expectations and reflects previously initiated strategies undertaken, including the initial growth of Australian revenues following the launch of the Raptor cabinet, offset against ongoing challenging conditions in our international markets, and an increased cost base and continued investment to support our revenue growth,” he said.

With Novomatic also pursuing broader international expansion—including obtaining a UAE license and extending its Dutch vendor license by another decade—the proposed acquisition of Ainsworth would significantly strengthen its global portfolio, especially in North America and Asia-Pacific.