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US – AGS reports record results in its first quarter

By - 10 May 2023

PlayAGS saw its results revenue for the first quarter ended March 31, 2023, increase by 14 per cent year-over-year to a record $83.2m compared to $72.9m in Q1 2022.

Table Products revenue advanced 18 per cent versus the prior year to a record $4.1m, supported by a more than doubling of our card shuffler revenue in connection with accelerating customer demand for our PAX S single-deck shuffler, consistent growth within our installed base of industry-leading table game progressives, and further adoption of our AGS Arsenal site license offering.

EGM revenue increased 14 per cent year-over-year, paced by EGM sales revenue growth of over 20 per cent, further recovery in our Mexico gaming operations business, with revenues up by over 15 per cent year-over-year, and the achievement of record domestic EGM gaming operations revenue for the second consecutive quarter. Interactive revenue increased two per cent versus the prior year, as outsized growth within our Real Money Gaming (RMG) business was partially offset by an anticipated decline in social casino revenue as we continue to strategically re-orient our segment-level technical and commercial resources to maximize profitable revenue growth within the RMG channel. Total revenue improved approximately two per cent over the then record $81.7m delivered in Q4 2022, representing our ninth consecutive quarter of sequential total revenue growth.

Gaming operations, or recurring revenue, increased 10 per cent year-over-year to $58.6m, accounting for over 70 per cent of AGS’ consolidated Q1 2023 revenue mix. Domestic EGM recurring revenue grew to a record $47.7m, up 10 per cent year-over-year and approximately two per cent ahead of the previous record of $46.8m set in Q4 2022.

The company’s growing premium game mix, the expanded depth and diversity of our core content offering, which has benefitted our capital-light installed base optimization initiatives, and a stable domestic gaming macroeconomic backdrop supported our record Q1 2023 Domestic EGM recurring revenue performance. International EGM recurring revenue advanced by more than 15 per cent year-over-year, paced by encouraging macroeconomic trends throughout Mexico, further installed base optimization, and favorable foreign exchange movements. International EGM recurring revenue has increased sequentially for eleven consecutive quarters. Table Products recurring revenue increased nine per cent year-over-year to $3.7m, supported by a more than doubling of revenue generated by the company’s growing card shuffler installed base, while Interactive revenue increased two per cent year-over-year. 

AGS President and Chief Executive Officer David Lopez said: “Our record-setting first quarter revenue and adjusted EBITDA performance is yet another testament to the way in which the strategic investments we have made in our people and products over the past several years have strengthened the underlying resiliency and vibrancy of our business. Supported by what I view as the strongest team and most compelling new product lineup in AGS’s history, I am extremely excited about what lies ahead for the Company and our shareholders.” 

Kimo Akiona, AGS Chief Financial Officer added: “As an organization, we remain singularly focused on optimizing our operating and capital deployment efficiency to further de-lever our balance sheet. Supported by our strong first quarter financial performance, the growing demand for our high-performing for-sale products, and the relative stability observed across our recurring revenue operations, we remain confident in our ability to exit 2023 with net leverage inside of our targeted 3.25 times to 3.75 times range, with an intermediate-term focus on returning net leverage inside of 3.0 times.”

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