Ainsworth Game Technology, one of Australia’s leading slot machine suppliers, has announced plans to self-fund its global expansion in the coming years, with a strong focus on 2023. The news was announced during the Annual General Meeting that took place last week and was headed by chairman Danny Gladstone.
Ainsworth Building Up Cash Reserves to Propel Expansion
Gladstone, who stepped down as chief executive in 2018, outlined the company’s strategy moving into next year. The company is determined to bolster its cash reserves so it can afford to continue and expand. Other Australian behemoths from the sector, including Aristocrat, are looking at a similar scenario.
Presently, Ainsworth has net cash of AU$50.3 million ($33.6 million), which should help it secure a firm foothold when pursuing any further expansions. Gladstone noted that Ainsworth is catching up quickly and pacing itself paying attention to the company’s Research & Development to ensure that it remains competitive.
Thanks to the company’s strong financial position, Ainsworth can ensure that any resulting products will be successfully launched to the ultimate benefit of players and customers. Not least, Gladstone and the Board feel confident that the company has come to a point where it can restart dividend payments to shareholders, bolstering trust in the company.
There are some economic uncertainties to account for, Gladstone cautions. His warnings are reminiscent of the words of Itai Pazner, who acknowledged that 888 Holdings ended up incurring above the expected level of debt following its purchase of William Hill’s international portfolio.
C-Level Executives Are Confident about the Future
Ainsworth CEO Harald Neumann was similarly optimistic about the company’s performance, with the company on its way to achieving profit before tax amounting to AU$18 million before tax for the six months ending on December 31, 2022. Neumann too confirmed the company’s determination to pursue further innovation in the gambling industry and build on promising future-proof products.
Ainsworth recently established two new studios in Australia and Las Vegas, which could become the backbone of future developments for the company. All in all concluded Neumann, Ainsworth is entering the new year at a good pace while also maintaining good momentum in the first half of the 2023 financial year.
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