Ainsworth Game Technology is anticipating a 36 per cent drop in revenue for the fiscal year to June 30, 2020, as the Sydney-based gaming machine manufacturer also says that its results, still to be audited, would confirm a number of redundancies.

Expecting revenue to finish up at AU$149m, the firm stipulates that 67 redundancies, 23 in Australia and 44 in the Americas, would bring annualised costs savings of AU$6.4m. A further 40 roles have also been eliminated at an added cost saving of AU$3.8m per year.

Striving to implement a number of cost saving measures to ensure the company can endure a protracted downturn, positive adjusted EBITDA of AU$2.9m is also anticipated.  

Adjusted net loss before tax is approximated to close at $34m, excluding one off costs including non-cash impairment charges, job keeper and costs associated with the acquisition of MTD, which was completed in March 2020. 

Furthermore, to assist with the impact of the COVID-19 pandemic and restrictions established in global markets, various cost minimisation measures were implemented by the firm throughout its final quarter. 

These include an extended 20 per cent executive management base salary reduction, the chairman waiving his fees for the June quarter and agreeing to a 20 per cent reduction for the September quarter, and other paid directors having taken a 20 per cent reduction in fees. 

AGT also noted that a AU$44m debt facility with the Australia and New Zealand Banking Group “is in the process of being amended with covenants being revised to minimum liquidity levels and quarterly sales targets”. 

Customers across all AGT’s markets suspended operations from mid-March, with some reopenings having occurred since although venues have reduced CAPEX due to visitations being well below pre-pandemic levels.

Lawrence Levy, CEO of AGT, explained: “While COVID-19 hit our industry hard, we moved quickly to protect Ainsworth. We took proactive measures to streamline our overheads and we are securing more flexible financing arrangements to ensure we can endure a protracted downturn. AGT is now well positioned as customers across our major markets look to recover from the effects of the pandemic”. 

AGT is expecting to release preliminary, unaudited FY20 results on 27 August 2020 after market close and anticipates release of audited results in September 2020.