A first half adjusted loss before tax (ex currency impact) of -$43m was below the UBS forecast loss of -$28m. As expected the period was impacted by significant disruption from covid across a number of regions which reduced customers’ capex budgets.
The performance in Australia and North America showed signs of sequential improvement from the 2H20 though Latin America (Latam) revenue declined -85% and continues to be negatively impacted by mandated casino closures and operating restrictions.
Sell rating is maintained. Target is increased to $0.35 from $0.30. While concerns around existing debt maturities have been addressed, UBS forecasts a prolonged recovery profile across Latam.
Sector: Consumer Services.
Target price is $0.35.Current Price is $0.77. Difference: ($0.42) – (brackets indicate current price is over target). If AGI meets the UBS target it will return approximately -120% (excluding dividends, fees and charges – negative figures indicate an expected loss).
