US – AGS sells over 1,000 EGMs for the first quarter since 2019By Phil - 9 November 2022
PlayAGS increased its third quarter revenues by16 per cent year-over-year to $78.3m with global EGM sales surpassing 1,000 units for the first time since the fourth quarter of 2019.
Table Products revenue advanced 30 per cent versus the prior year, reflecting outsized growth within AGS’ progressive installed base, growing demand for our PAX S single-deck card shuffler, further adoption of the AGS Arsenal site license offering, and the Q1 2022 Lucky Lucky side bet acquisition.
EGM revenue increased by more than 15 per cent year-over-year, paced by EGM sales revenue growth of over 50 per cent. Global EGM sales topped 1,000 units for the first time since Q4 2019, reflecting the successful execution of the company’s strategy to broaden its global customer account penetration, continued recovery in North American replacement unit demand and complementary EGM sales into international markets. Interactive revenue grew to $2.6m in Q3 2022 as the company continued to benefit from outsized growth within its Real Money Gaming business. Total revenue improved approximately two per cent over the $76.6m delivered in Q2 2022, representing the company’s seventh consecutive quarter of sequential total revenue growth.
AGS President and Chief Executive Officer David Lopez said: “Our third quarter financial results further reflect the people, product and process-driven operating momentum building within our business. Given the encouraging initial customer response to the broader and more diverse new product lineup we recently unveiled at the Global Gaming Expo, I am even more excited about what lies ahead for our Company and its key stakeholders.”
Kimo Akiona, AGS Chief Financial Officer added: “I am extremely pleased with the balance sheet deleveraging progress we have made year-to-date, as we ended the third quarter with net leverage at 4.0 times. Supported by the stable operating trends we continue to observe within the business, I remain confident in our ability to deliver on our year-end net leverage target of less than 4.0 times and look forward to further reducing leverage in the years ahead.”
The company sold 1,014 EGM units in Q3 2022.
It stated: “The increased depth and breadth of our core game content catalog, the strategic broadening of our customer account penetration, continued success in capturing an outsized share of Historical Horse Racing sales opportunities, a steady recovery in core North American replacement unit demand, and additional complementary international sales combined to drive our improved EGM unit sales performance versus the prior year. EGM unit sales increased approximately nine per cent relative to the 934 units sold in Q2 2022.”
It sold units into 26 US states, four Canadian provinces throughout Q3 2022.
During Q3 2022, AGS began to trial its newest gaming cabinet, the Spectra UR43. As a testament to the product’s strong initial performance, Spectra recently received top honors in the “New Portrait Upright” category of the October 2022 Eilers-Fantini Cabinet Performance Report with a reported index of over 2.5x house average. Spectra is currently trialing across a variety of different end markets, with its two launch titles, Long Bao Bao and Shamrock Fortunes, consistently delivering performance well above house and zone average. Spectra will soft launch in Q4 2022, with a full-scale commercial launch planned for Q1 2023.
“We currently have over 30 titles under development to support Spectra during its first year of commercialisation,” the company said. “Our first two high-denomination game themes, Mega Diamond and Gold Inferno, recently went live, with the initial installs delivering strong game performance both inside and outside of the high-limit room. High-limit games’ structurally superior win per day dynamics should boost our domestic EGM fleet optimisation initiatives as we are able to build a critical mass of high-denomination games within our domestic EGM installed base. Additionally, the expansion of our content offering into the high-denomination vertical creates unique product bundling opportunities, which should drive incremental domestic EGM unit sales volume. “
“Our Orion Curve Premium installed base increased by over 40 per cent on a quarterly sequential basis, as the product continues to establish critical mass across both Class II and Class III jurisdictions,” it added. “The continued strong performance of our Rakin Bacon Deluxe launch title, our robust Curve Premium game theme pipeline, consisting of over 25 titles, and the expanded breadth of our product configuration and merchandising offerings should allow us to further broaden our penetration of the higher-yielding premium game segment.”