Australian Gaming Supplier Ainsworth Hit by Cyberattack
Australian gaming supplier Ainsworth Game Technology has reported a cybersecurity incident that has disrupted its internal systems and operations. Despite the disruptions, Ainsworth stated that precautionary measures in place are expected to prevent the incident from having a material impact on its financial results for the second half of 2024.
Ainsworth Game Technology's offices in the US. (Source: KGA)
LISTEN TO THIS ARTICLE:The company announced that an investigation is underway to assess the full scope of the breach. However, it didn't provide any additional details or indicate whether the possible hack led to unauthorized access of its sensitive data or partnership information.
Related: Pariplay and Ainsworth Take Distribution Deal to CanadaThis marks the latest in a string of cybersecurity incidents affecting the gaming industry, following a similar attack reported by International Game Technology (IGT) earlier this month. In August 2023, Ainsworth's larger competitor, Aristocrat Leisure, also disclosed a cyberattack, highlighting a growing trend of security challenges in the sector.
Alongside addressing the cybersecurity breach, Ainsworth provided a preliminary trading update for the six-month period ending 31 December 2024. The company projected profits to range between $8 million and $10 million for the period, reflecting a decrease from the $14.3 million reported in the first half of the year. Ainsworth attributed the decline to various factors, including adjustments in gross margins and a shift in product mix, particularly within its Latin American markets.
The company emphasized growth in revenue during the period, projecting a sequential increase of 12% compared to the $121.4 million generated in the first six months of the year. Positive momentum was reported across all geographic regions, with the exception of the digital segment, which faced challenges following the reduced contributions from GAN after the termination of an exclusivity agreement. Ainsworth highlighted that cost-control measures have allowed overhead expenses to remain consistent with the first half of the year, despite the rise in revenue.
More Business News
A Slower Second Half
Ainsworth noted that gross margins for the second half of 2024 are expected to be 62%, a reduction from the 67% achieved in the first half of the year. The company attributed this decrease to a combination of factors, including competitive market conditions and changes in its product mix within key regions. Despite these challenges, the company expressed optimism about its ongoing development initiatives and their impact on future performance.
CEO Harald Neumann indicated that the growth in revenue during the period is encouraging and aligns with the company's broader strategy to release a new suite of game offerings across global markets. Development initiatives undertaken in previous periods have reportedly improved game performance, with further game releases and hardware developments anticipated to sustain growth in the coming months.
The company's focus remains on building positive momentum through innovation and operational efficiencies. While the cybersecurity incident has posed challenges, Ainsworth's robust response and proactive measures appear to have mitigated potential financial impacts. This resilience underscores the company's commitment to navigating both operational disruptions and competitive market dynamics while maintaining a forward-looking approach to growth and profitability.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Australian Gaming Supplier Ainsworth Hit by Cyberattack