AGS aims to continue the momentum of the “record-setting fourth quarter” that the group hails after a series of increases across the board, which was topped off by the best net income performance.
The October-December quarter revenue rose 16.4% to $81.73m (2021 : $70.22m). This figure is also four percent higher than the $78.3m received during the previous quarter. This is the eighth consecutive quarter of sequential total revenue growth.
Electronic gaming machines continue to be the largest segment of the company, accounting for 16.8% of the total from $64.49m (2021 : $75.33m).
The company stated that this result was due to the following: “The continuous improvement of our EGM unit sales performance is a reflection of successful execution of our coordinated strategy for broadening our global customer account penetration; acceleration returns on recent R&D investment intended to strengthen our EGM content and gaming cabinet portfolios, continued recovery in North American substitute unit demand; and complementary EGM sale into international markets.”
Table products saw a 22% increase to $3.89 million (2021: $3.18m). This AGS noted was a result of increasing demand and increased adoption of a variety of its products.
Interactively, there was a slight drop of 1.1 percent to $2.5m (21: $2.53m). A seven-percent increase in real money gaming revenue was offset by “an expected decline” in social casino output.
AGS stated that it is working to “strategically redirect its technical and commercial inter-active resources to maximise long-term profitable RMG revenues growth.”
Kimo Akiona, AGS Chief financial Officer, stated, “We exited 2020 with net leverage within 4.0x, consistent in line with our expectations at the beginning of the year.”
“As we look ahead to 2023, our organisation remains focused on maximising cash flow and further reducing our leverage.”
AGS also reported “record” net earnings of $2.5m, which was a contrast to the loss of $9.1m one year ago. This is consistent with AGS’s continued focus on operational expense efficiency. The recent rise in market-level rates resulted in slightly higher interest expenses.
The adjusted EBITDA rose 16 percent to $37.3m (2021: 32.3m), driven by gains in the EGM- and table games segments. Interactive struggles partially drew back some of these gains.
David Lopez is the President and Chief Executive Officer of AGS. He stated that “Our fourth quarter record results reflect the accelerating returns that we continue to realize on investments made in our R&D and sales teams over the last several years.”
“I see three specific growth catalysts for our company in 2023. This should help us maintain our current operating momentum.”