Having read all I could find on the recent results by AGI, I'm still trying to piece a few things together so if anyone can provide insight into these questions I would greatly appreciate it. Thank you.
In one of the calls, it was mentioned that the driving force for increased H2 revenue was performance with new brands being cited as a catalyst. Three of these brands in particular were called out: Kanga Cash, Mad Millions and Crazy Jackpot. It was also mentioned that these were off to "promising starts." However, the publicly-available Max Gaming figures from NSW and QLD indicate that these are already performing very poorly. See the table below. If these new brands continue to perform as poorly as they already are, how will the H2 results be affected? What is the conversion / replacement strategy moving forward should operators require new content for these machines due to low performance? Is there regulatory and competitive risk to the new titles as there has been in the past?
Kanga Cash / Kanga Cash Extra, < 60% turnover against other $0.50 games in NSW reporting since late Jan / early Feb
Kanga Cash / Kanga Cash Extra, < 95% turnover against other $0.50 games in QLD reporting since late Jan
Crazy Jackpots, 1 theme performing ~ 90% with others performing < 50% in NSW reporting since mid Feb
Mad Millions reporting only for a couple of days
More generally, the performance of all domestic product in the last year or so has fallen completely flat almost immediately. What is the plan to bring in new content as what is being tried is clearly not working? I know that 3rd parties are being touted, is that the entire solution or are there addition pieces which will need to fall into place?
Ainsworth has very standard, core-style cabinet for NA markets in an atmosphere that is increasingly being driven by premium cabinets, especially curves and large screens, even for standard for-sale product, as evidenced by the last 3 or so G2Es. How does this affect operator enthusiasm on purchases, if at all, and will there be downward pressure on pricing and margins driven by the very competitive new cabinet offerings?
Ainsworth released the Evo shortly after the A600. Maybe I'm overthinking things, but I would think many operators would feel burned at having invested in A600s with another dual screen cabinet being released so shortly thereafter. Has there been any push back from operators who purchased the A600 or are they open to the improved hardware of the Evo despite their A600 purchase?
Are the number of C2 machines on route net increasing or decreasing in NA, and how is Ainsworth's performance tracking in relation to the size of the pie? More generally, is this a reliable source of revenue 5 years, or even 10 years down the line, or are a large percentage of C2 machines going to be converted into C3? When conversions from C2 to C3 take place, does Ainsworth generally hold onto their relative floor space?
Is there room to grow LATAM or has it reached saturation?
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