Industry Report: NETENT Elects New Chairman – Ainsworth Misses Profit Forecast

The online gambling industry is a busy one and there are always new news developments to report. We will strive to bring you some of these developments in bite-sized chunks. That way you can keep informed on all the big events taking place in the industry. In this week’s gambling report, Ainsworth Game Technology shares took a bit of dip late last week as the company lowered the profit forecast for the company.

Meanwhile, NETENT recently had their annual general meeting and in the process named Fredrik Erbing as Chairman of the Board.

NETENT Reelects Chairman and Fills Other Board Spots

Earlier this month, NETENT held their annual general meeting and subsequently posted the results of that meeting online. During the meeting, they addressed a share split for investors and held Board elections.

In addition, three members of the Board of Directors declined re-election during the vote for current and new members. Michael Knutsson, Maria Hedengren, and Jenny Rosberg left their posts. Lisa Gunnarsson, Christoffer Lundström and Jonathan Pettemerides replaced them. Fredrik Erbing, Peter Hamberg, Maria Redin, and Pontus Lindwall were all re-elected. Afterward, Erbin became the company’s new Chairman of the Board.

Company stock split details were also provided later in the minutes. Each shareholder will receive value of SEK 2.25 per share as of May 23, 2019. They can convert that value into new shares by June 13, 2019. NETENT is traded on the NASDAQ Stockholm exchange as NET-B.

Ainsworth Reduces Profit Forecast

Australian gaming company Ainsworth Game Technology (ASX:AGI) shares took a bit of a downturn last week. The development occurred after it announcing profit estimates for the second half of 2019 would be lower. They told the Australian Securities Exchange on May 7 that expected profits before tax will be about $4 million (US $2.8 million). That figure is less than predicted in February.

According to the firm: “This result has been impacted by intense competitive market pressures and delays encountered in new product approvals which were not achieved in the expected timeframes. These approvals are now being progressively secured and are expected to translate into improved product performance and domestic market share gains in financial year 2020.”

The firm continued, “Continued progress within the Americas has partially offset this lower-than-expected contribution from Australia in the second half of financial year 2019, with North America expecting a similar and Latin America a slight increase in their respective segment results compared to the first half of financial year 2019.”

They also added, “In addition, Ainsworth now expects as part of the finalisation of the financial year 2019 results to reduce the balance-sheet carrying values of its Australian and digital assets with a non-cash impairment charge. This charge is expected to be around AUD5 million and includes the value of the goodwill associated with the New South Wales service business, given lower New South Wales unit volume sales (AUD2.4 million), and a AUD2 million reduction in the value of the Ainsworth’s shares in 616 Digital.”

– Ainsworth Shares Take a Tumble

The firm reached out to shareholders and told them that the reduced revenues from the Australian market were due to “the challenging domestic market and competitor factors, especially in [Australian states] New South Wales and Queensland.”

Following the announcement, share prices for the firm dipped about 9.5 percent, dropping to just .76 per share. Since that time, the stock has recovered to about .80 per share. The company is down about 33% from a high of $1.27 that it had on May 29, 2018. The stock dipped below $1 in November and has been hovering in the .80 range ever since.