Novomatic backs down on Ainsworth stake

Ainsworth Game Technology (AGT) adjusted its revenue upward twice this month, following several deals that improved its financial position. The news came a little for the company’s controlling shareholder, however, who had already decided to retreat on its stake in the operations. Ainsworth, in a filing with the Australian Securities Exchange, announced last Friday that Novomatic took a reduction in stake last May, dropping from 53.58% to 52.38% its control in the company.

Novomatic became the primary shareholder after it spent around $350 million to purchase a major stake in the company in January. That purchase had begun about two years prior.

With the acquisition, Novomatic gained access to new markets in the US and Asia, with Novomatic Chief Technology Officer Thomas Graf saying at the time that Ainsworth had “superior gaming technology, clear industry expertise and [an] impressive international footprint, especially in the U.S. market.”

Ainsworth reported less than two weeks ago that it expected its revenue for the second half of 2018 to reach $26.5 million. This was an increase of $11.8 million over previous expectations and came after the company signed a significant deal with Churchill Downs. That adjustment came after its previous fiscal year before-tax profits were adjusted to $28.97 million, up $2.48 million over the previously reported $26.49 million.