Ainsworth Flags AUD43.1 Million Goodwill Impairment for 2025

Australia listed slot machine manufacturer Ainsworth Game Technology Ltd has warned investors of a sizable one off accounting charge tied to its North American business, following a review of performance and updated growth expectations ahead of its full year results.

Good to Know

• Ainsworth will book a non cash goodwill impairment of AUD43.1 million
• The charge relates to underperformance in North America during 2025
• Underlying EBITDA guidance for the year remains broadly flat

Ainsworth Game Technology Ltd said on Thursday that it will record a non cash impairment of goodwill totaling AUD43.1 million, or about US$30.2 million, as a one off item for the financial year ended December 31, 2025.

The company said the decision followed a detailed review of its North American cash generating unit, including preliminary discussions with external auditors. The impairment relates to goodwill from the acquisitions of Nova Technologies and MTD Gaming Inc and reflects weaker than expected performance in the region during the year.

Ainsworth said the underperformance led management to revise growth assumptions for the North American unit. Those updated assumptions were then applied in the impairment assessment, resulting in the recoverable amount falling below the carrying value of the goodwill asset at the reporting date.

Earnings Outlook and Other One Off Items

Alongside the goodwill write down, Ainsworth said other one off items for 2025 are expected to include losses of about AUD22.7 million. These are primarily tied to net foreign currency losses, transaction costs linked to a terminated scheme of arrangement and off market takeover offers, and the impairment of other non current assets connected to the group online cash generating unit.

The gaming supplier now expects underlying EBITDA for 2025 to come in at around AUD48.0 million, compared with AUD48.2 million in the previous financial year. Underlying EBITDA margin is forecast at 16.5 percent, down from 18.3 percent a year earlier.

Ainsworth said the lower margin has added pressure to operating cash flows, largely due to sales coming in below expectations and higher inventory levels at the reporting date.

The company added that the goodwill impairment will not affect the ability of its U.S. based subsidiary, Ainsworth Game Technology Inc, to meet financial covenants tied to its secured loan facility with Western Alliance Bancorporation.

Looking further down the income statement, Ainsworth said it expects to report underlying profit before tax, excluding currency movements and one off items, of approximately AUD21.0 million for 2025. That figure is slightly below the AUD21.5 million estimate provided in a December 8 trading update and compares with a reported profit of AUD23.2 million for the 2024 financial year.

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