Supplier News
US – Buoyant industry drives third month of AGEM Index increase
By Phil - 7 June 2013
In May 2013, the AGEM Index reported a composite score of 167.49, up 8.04 points, an increase of five per cent when compared to April 2013.
The latest performance reflects the third consecutive month-to-month increase, and the index has only witnessed one monthly decline since the beginning of the year when it fell 0.7 per cent in February 2013. Compared to a year ago, the AGEM Index is up by 49.12 points, or 41.5 per cent. In May, 10 of the global gaming equipment manufacturers reported increases in stock price when compared to the prior month, with all but two up by more than five per cent. Of the seven companies that witnessed declines, just three were down by more than five per cent.
The AGEM Index outperformed the broader stock markets in May. The Dow Jones Industrial Average ended the month at 15,115.57, representing a 1.9 per cent increase when compared to the prior month. The S&P 500 reported a slightly better performance, increasing 2.1 per cent month-to-month to 1,630.74. Meanwhile, NASDAQ witnessed the greatest increase of the three, rising 3.8 per cent to 3,455.91.
One of the positive contributors to the May 2013 AGEM Index was Lottomatica who reported a stock price of €20.79, up 7.4 per cent, and contributed 1.91 points. Konami (KNM) contributed 1.82 points due to a 7.8 per cent increase in stock price to $24.47.
With a stock price of $17.88, up 5.5 per cent, International Game Technology (IGT) contributed 1.69 points to the overall index.
Ainsworth Game Technology (AGI) reported a stock price of AU$3.70, down 2.9 per cent, and diluted the index by 0.74 points whilst Global Cash Access (GCA) contributed negative 0.22 points, due to a 7.4 per cent decline in stock price to $6.60 per share.
A number of the gaming equipment manufacturers reported top-line revenue growth in the three months ending March 31, 2013, suggesting continued expansion in the sector. Results for selected companies are noted below.
Bally Technologies reported net revenues of $259.1m during the company’s fiscal third quarter of 2013, up 13.3 percent from the prior year period. Each of the major sources of revenue reported year-over-year increases. Gaming equipment revenues increased 8.2 per cent to $85.8m, due to an increase in domestic replacement sales. The average selling price of new gaming devices declined six per cent to $16,051 during the quarter, but new-unit sales increased 18.7 per cent to 4,923. Gaming operations revenues increased 10.3 per cent year-over-year while systems revenues reported the greatest year-over-year increase, rising 25.5 per cent to $71.3m.
Net revenues for International Game Technology were $600m during the company’s fiscal second quarter of 2013, up 10.9 per cent compared to the second quarter of 2012. Although gaming operations revenues reported a year-over-year decline during the period, down by 4.4 per cent, strong increases in product sales and interactive revenues drove overall growth. Product sales revenues increased 15.9 per cent to $279m as a result of a 24.8-percent increase in revenues in North America. Units shipped increased 36.2 per cent to 14,300, largely attributable to a 58.8 per cent increase in North American new units and a 68 per cent increase in North American replacement units. Average machine selling price declined 10.8 per cent to $14,100, primarily due to increased promotional activity. Social gaming revenues increased 31.0 per cent quarter-to-quarter to $54.3m.
Multimedia Games reported net revenues of $46.6m during its fiscal second quarter of 2013, up 17.8 per cent from a year ago. Gaming operations revenues increased 15 per cent to $33.4m, while gaming equipment and system sales revenue increased 26.4 per cent to $12.8m. The latest performance is partially attributable to the sale of 580 new units during the period, up 22.9 per cent from a year ago. In addition, the company deployed over 1,000 new revenue units for the third consecutive quarter. The domestic participation installed base increased 18.4 per cent year-over-year to 11,712.
Net revenues for Wells-Gardner Electronics increased 46.1 per cent during the company’s fiscal first quarter of 2013 to $18m. The latest performance is attributable to an increase in VGT sales in Illinois, which resulted in a 55 per cent increase in sales to the gaming industry.
