Ainsworth Eyes Strong Second Half as Online Gaming Deal Fuels Growth
The Australian gaming tech firm, Ainsworth, anticipates a robust latter half of 2021, propelled by a revitalization in the worldwide gaming sector post-pandemic. They project a profit before tax of AU$1 million (US$780,000) for the six-month period concluding December 31, 2021. This figure excludes the singular gain from the divestiture of their Nevada production facility earlier this year.
This optimistic projection is supported by an anticipated 128% surge in earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second half of the year, reaching AU$13.2 million. This brings their estimated full-year EBITDA to AU$19 million.
A primary catalyst for this expansion is a recently inked five-year, US$30 million agreement with GAN, a prominent online gaming platform supplier. This collaboration grants GAN exclusive US licensing privileges to Ainsworth’s vast collection of online real-money games, encompassing both existing and forthcoming releases.
This strategic maneuver enables Ainsworth to concentrate on their core competency: crafting premium, captivating land-based gaming content. The alliance with GAN will subsequently leverage this content to broaden Ainsworth’s footprint within the rapidly expanding online gaming market.
The accord, in effect from July 1, 2021, will witness GAN assimilating Ainsworth’s current online operations in New Jersey and their intended expansions into Michigan and Pennsylvania. This partnership signifies a decisive move by Ainsworth to capitalize on the flourishing US online gaming sector.
