Ainsworth is one of the oldest poker machine developers in Australia’s gambling market. While the company has seen a great deal of success in this time, Ainsworth has recently seen a decline in sales – causing a decline in its stock.
"Domestic revenue for the first half of 2014-15 is expected to be similar to the second half of 2013-14 and down approximately 30 per cent compared to the previous corresponding period," says Ainsworth CEO Danny Gladstone. "Given the expected lower domestic revenue, the company advises that it expects to report a lower [interim] profit compared to the corresponding period, however in line with the second half of 2013-14."
Shortly after making this statement was released, Ainsworth’s stock dropped by 12%. While the company is confident that it will boost sales in the next financial year, it seems as though investors are not willing to wait around for that to happen. Ainsworth announced that there are number of projects in the pipeline that will help the company recover profits.
One of these plans includes creating a new range of poker machines that are based on famous films such as Showgirls and The Sound of Music. Ainsworth aims to tap into the popular market of themed and branded poker machines, which is a huge trend in the gaming world. Ainsworth is also making plans to enter into the online gaming market.
The company has recently entered into an agreement with Playtech that will see the company offers its pokies in the online gaming world. By entering into the online pokie market, Ainworth will appeal to a new audience and increase its appeal. We may also soon see Ainsworth pokies at social casinos.
The company certainly has a long-term game plan to improve its profits. We hope to see Ainsworth bounce back in the future.
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