Supplier News
US – AGS sees 13 per cent growth driven by early-entry markets
By Phil - 9 May 2019
US slot and table manufacturer AGS saw its revenue grow by 13 per cent to $73m in its first quarter, driven by continued growth in its EGM segment, primarily sold units in early-entry markets such as Michigan, Saskatchewan, Pennsylvania, and Massachusetts, as well as continued penetration into ramping markets such as Florida and California.
AGS Chief Executive Officer David Lopez said: “I’m pleased to report another solid quarter of growth for AGS, with total revenue of $73m up 13 per cent year-over-year, driven by double-digit gains in EGMs and Tables. Sold EGM units grew 22 per cent year-over-year and our Tables Products segment reported its strongest quarter to date, driven by our award-winning progressive platforms. Our EGM recurring revenue installed base grew 14 per cent year-over-year to 27,308 units, driven by the inclusion of 2,500 EGMs from the Integrity acquisition, which we closed in February of this year. With numerous levers to build momentum — including strategic investments in R&D to continue building a strong, diversified, and expanded product portfolio, as well as many new and under-penetrated domestic and international markets — AGS is well-positioned for continued long-term, meaningful growth.”
Record gaming operations revenue, or recurring revenue, grew to $52.9m, or seven per cent year-over-year, driven by the acquisition of Integrity, growth and performance of our international installed base, and an increase in Table Products revenue.
EGM sold units increased 22 per cent to 1,024 compared to 838 in the prior year led by sales of the Orion Portrait and Orion Slant cabinets in early-entry markets and increased sales to corporate customers.
The company’s Orion Portrait footprint increased to over 5,900 units, up 125 per cent year-over-year and accounted for 65 per cent of sales in the quarter. The new Orion Slant footprint increased to over 1,930 units, up 27 per cent sequentially, and accounted for 21 per cent of sales in the quarter with initial placements in several early-entry markets such as California and Washington driven by strong performance of its Fa Cai Shu family of games.
The company’s ICON cabinet footprint increased by 977 units year-over-year and over 400 units sequentially to over 7,860 units, with 686 ICON units in Mexico as of the first quarter.
