PlayAGS had a revenue of $309.4m, (PS258.0m/EUR292.0m), in its full-year 2022 results. It also recorded a record revenue in Q4 of $81.7m.
The fourth quarter revenue grew by 16.4% year over year and was the highest in eight consecutive quarters.
David Lopez, President and Chief Executive of PlayAGS, stated that the record-breaking fourth quarter results are a reflection of the accelerating returns we continue achieving on our investments over the past few years in research and development, product management, and sales teams.
“Looking forward to 2023, I see three specific growth catalysts for our company that will allow us to maintain our current operating momentum.”
Results for Q4
The quarter’s highest revenue was generated by electronic gaming machines (EGM), which earned $75.3 million. Table products revenue increased by 22.0% to $3.8m. Interactive segment revenues decreased slightly by 1.1%.
Gaming operations revenue increased 8.4% to $57.4m while equipment sales revenue increased 40.7% to $24.3m.
The quarter’s operating expenses were $68.2m. This is largely unchanged from the $68.3m in Q4 2021.
The depreciation costs and amortisation cost also remained steady, increasing slightly from $18.4m up to $18.5m
The highest cost was $16.8m for selling general and administrative expenses. However, this was 11% lower year-on-year.
Equipment cost was $12.4m and gaming operations cost $10.6m. The remainder of the expenses were made up by write-downs as well as research and development costs.
Operating income was $13.4 million, an increase of $11.5% over the previous year.
The total was further affected by $12.7m in interest expense. The quarter’s net income was $2.5m due to interest income of $331,000 and income from other sources $583,000, which is a decrease in the loss of $9.0m for 2021.
After income tax at $937,000 the total net income was $2.5m, another record for the operator.
The full-year revenue was 19.2% higher than 2021.
The EGM business generated the majority of the revenue, totalling $284.8 million for the year. This represented a 19.6% increase.
Table products revenue was $14.9m up 25.6% while interactive revenue was $10m up 1.8%.
Gaming operations revenues totalled $223.8 million. The remaining revenue came from equipment sales, which amounted to $85.6 million.
Costs aside, depreciation & amortisation accounted for $75.5 million. Selling, general, and administrative expenses amounted to $67.7m. Equipment costs increased sharply by an 83.2% increase to $44.4m.
The remainder of the costs consisted of gaming operations, research and developmental costs, and write-downs fees.
The operating expenses for the year were $271.4m. This is an increase of 13.1%. The operating income was then $37.9m.
Interest expense was another major contributor to the loss, amounting to $40.6m in the entire year. The loss on extinguishment or modification of debt, as well as other expenses, totaled $8.6m.
After interest income of $1.0m, pre-tax income was $10.2m. The total loss was $8.0m after accounting for income tax at $2.2m. This is a significant improvement over the $22.5m loss in 2021.