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US – AGS sells slots into 19 US states to set new quarterly records

By - 6 August 2021

With its table products EBITDA reaching a new quarterly record of US$1.4m and its domestic EGM RPD and domestic gaming operations revenue establishing new company records, AGS managed to improve its net loss for the second quarter to $3.9m compared to $7.8m in Q1 2021 whilst its EBITDA was up more than 20 per cent from the first quarter of the year Over Q1 2021.

The company saw its Orion Starwall footprint growing to over 520 games at the quarter end whilst interactive real money gaming revenue more than doubled to a record $2.2m.

AGS President and Chief Executive Officer David Lopez said: “We were able to leverage our over 15,000 unit domestic EGM installed base, our growing premium game footprint, and the revenue strength witnessed throughout the domestic gaming market to establish new Company records in both domestic EGM revenue per day (“RPD”) and domestic EGM gaming operations revenue in the second quarter. Looking ahead, our improved execution and accelerating product momentum across all three of our business segments position us to deliver additional growth and share taking in the coming quarters.”

Kimo Akiona, AGS’ Chief Financial Officer, added: “The continuous improvement being achieved as a result of our enhanced game content development execution, upgraded product management capabilities, and refined capital deployment processes, sets us on a path to deliver more consistent financial performance, improving our capital returns and leverage profile, and, most importantly, strengthening shareholder value over time.”

Although North American slot replacement demand has meaningfully improved over the past several months, operators’ aggregated capital spend on new equipment purchases remains below pre-COVID-19 levels, pacing our reported EGM revenue decline versus Q2 2019.

The growth achieved within AGS’ domestic EGM, Table Products, and Interactive recurring revenue businesses, versus the levels reached in Q2 2019, was partially offset by a decline in our international EGM recurring revenue business as our Mexico business continues to navigate COVID-19-related operating restrictions.

The company sold units into 19 US states throughout Q2 2021, with Washington, Kentucky and Arizona emerging as its top three sales markets.

Its premium, lease-only Starwall x Orion installed base grew to over 520 games at quarter end. Starwall games continue to produce RPD’s nicely above the company average. The Starwall’s solid game performance and the introduction of additional configuration options have further strengthened operator interest in the product.

The company said: “We recently commenced the commercial launch of our Orion Curve Premium package featuring an extension of our player-favorite game theme, Rakin’ Bacon!. Initial installs are delivering game performance nicely above house average, helping to accelerate operator demand. We continue to leverage our exceptional game performance to cultivate additional demand in existing and soon-to-open Historical Horse Racing markets. Our Captain Riches game theme, a member of our Ultimate Choice Jackpots ) family of games and available on our Orion Curve cabinet, achieved a top 15 ranking within the “New Core Video Reel” category of the July 2021 Eilers-Fantini Game Performance Report. Follow-on titles within the UCJ family are also delivering game performance above house average, helping to further stimulate demand for our for-sale products.”

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