Gaming technology supplier Novomatic AG has posted a significant decline of 68.8 percent year-on-year in profits for the first six months to June 30.
The company generated a total profit of EUR34.3 million (US$37.7 million) in the first six months of 2019.
The company has blamed the performance of its Australian slot machine maker Ainsworth Game Technology Ltd and said that it has significantly dampened its profits so far this year.
“Due to performance problems in its home market of Australia, Ainsworth Game Technology Ltd recorded a decline in revenues compared to the previous year,” Novomatic said in a recent statement to the press.
Earlier last week, Ainsworth had posted a 43.2 percent dip in profits from the Australian market. The company posted a year-on-year profit of AUD36.1 million (US$24.3 million).
The company has also blamed the regulatory overhaul in other regulated European markets for the shrinking profits.
“Overall, declines in sales revenues in individual markets caused by regulatory challenges were almost entirely offset at the group level,” said the company.
Recently, Inspired Entertainment Inc officially announced the acquisition of the Gaming Technology Group (“NTG”) of Novomatic UK, a division of the Austrian NOVOMATIC GROUP.
The entire deal has been finalized for $120 million. The company aims at increasing its UK market share with the acquisition deal and has said that it would be supplying a range of its gaming and gambling products and services in the country. Once the deal is closed, Inspired would be managing approximately an estimated 75,000 gaming machines in the UK and Europe.