The Australian gaming tech firm, Ainsworth, anticipates a robust conclusion to 2021, predicting a pre-tax profit of AU$1 million (US$780,000) for the six months concluding on December 31st. This optimistic forecast follows what Ainsworth characterizes as an “above-expectations” showing in the latter half of the year, fueled by enhancing market dynamics as the worldwide economy rebounds from the COVID-19 crisis.
It’s important to highlight that this profit estimate excludes the singular gain from the divestment of Ainsworth’s Nevada production facility in March 2021, which yielded the company AU$330 million. Absent this injection, Ainsworth projects its core profit, quantified as EBITDA (earnings before interest, taxes, depreciation, and amortization), to attain AU$13.2 million for the second half of the year. This signifies a substantial 128% surge in comparison to the initial half of 2021. Examining the entire year, Ainsworth anticipates EBITDA to reach AU$19 million.
A primary catalyst for this projected expansion is Ainsworth’s current five-year agreement with GAN, a prominent gaming software provider. This strategic alliance, appraised at US$30 million, grants GAN sole rights to disseminate Ainsworth’s present and forthcoming online real-money games throughout the United States.
Possessing a catalog of 79 distinct games already accessible, Ainsworth, via this collaboration, is advantageously situated to capitalize on the burgeoning US online gambling sector. The accord, effective as of July 1, 2021, will witness GAN incorporating Ainsworth’s extant online operations in New Jersey and its intended expansion into Michigan and Pennsylvania. This enables Ainsworth to concentrate on its forte – crafting premium, immersive slot games for brick-and-mortar casinos – and utilize GAN’s proficiency to deliver those games to a broader online demographic.