Competition in its home market and regulatory delays in North America have led to Australian slot machine innovator Ainsworth Game Technology Limited recording a 37.8% decrease year-on-year in net profits for the sixth months to the end of December.

Ainsworth Game Technology Limited reported profits of $15.8 million for the six months to December 31, which is down from $25.3 million for the same period in 2015, as the firm’s half-year revenues slid 14% year-on-year to $94 million.

The Sydney-based slot machine developer declared six-month earnings before interest, tax, depreciation and amortisation of $24.4 million, which represents a decline of nearly 41% year-on-year, while a 33% rise in research and development expenditures contributed to its recording an 18% increase in total operating costs to $44.7 million.

Ainsworth Game Technology Limited stated that international markets accounted for 67% of its aggregate revenues during the half-year period while the results saw its earnings per share crash by 40% year-on-year to stand at a little over four cents each with no interim dividend.

“Although these results are in line with our announcement last October, the reduction in profit is disappointing,” read a statement from Danny Gladstone, Chief Executive Officer for Sydney-listed Ainsworth Game Technology Limited. “Our results were impacted by competitive domestic markets and temporary delays in North American approvals. We have implemented strategies to correct these initial reductions in unit volumes and margins and expect to deliver an improved financial performance going forward.”

Excluding foreign exchange rate movements, Ainsworth Game Technology Limited explained that it anticipated full-year profits would be “at least” $42.9 million, which compares with just over $54 million for the previous financial year, as its Australian market recovers due to the development and launch of new games and products. The firm moreover declared that its expects strong growth in North America thanks to its new offices in Las Vegas and the benefits of its $38 million acquisition in January of 2016 of Class II machines developer Nova Technologies.

Finally, Ainsworth Game Technology Limited proclaimed that it expects to begin delivering on synergies with Novomatic “beginning in the second half of financial year 2017” after its stakeholders approved the sale in June of 52.2% of the firm to the Austrian giant.