Competition in Australia and regulatory delays in north America have contributed to a 38 per cent fall in half year profit for poker machine supplier Ainsworth Game Technology.
The company made a net profit of $20.6 million in the six months ended December 31, down from $33.1 million a year earlier.
Ainsworth said it expects a strong recovery in profit in the second half of the year, though its full-year pre-tax profit, excluding currency movements, may be lower than the prior year.
Its half year pre-tax profit excluding currency movements dropped 40 per cent from a year ago.
"Although these results are in line with our announcement last October, the reduction in profit is disappointing," chief executive Danny Gladstone said.
"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."
Mr Gladstone said Ainsworth expects strong growth in North America, partly helped by the group's new headquarters in Las Vegas and its acquisition in January 2016 of Nova Technologies, a supplier of Class II poker machines.
The Australian market should recover as new games and products are developed and released, he said.
Ainsworth expects a pre-tax profit, excluding foreign currency movements, of at least $56 million for the full year, compared to $70.4 million in 2015/16.
AINSWORTH EXPECTS STRONGER PROFIT IN SECOND HALF
* First-half net profit down 38pct to $20.6m
* Revenue down 14pct to $122.7m
* No interim dividend, down from five cents
