PlayAGS announced record revenues of $89.8m in the second quarter (PS70.7m/EUR82.0m), an increase of 17.3%.
PlayAGS has now surpassed the Q1 record revenue of $83.2m.
David Lopez, PlayAGS President and Chief Financial Officer, stated that this quarter’s growth was due to the consistent growth of all three PlayAGS segments: electronic gaming machines, table products, and Interactive.
He said, “Our second-quarter financial performance is a record, and it clearly shows the strength of all of our team members, products and strategies, creating significant momentum in our three business segments.”
The EGM segment accounted for the majority of revenue, totaling $82.6m. The increase was 17.3%.
The table products category saw the largest increase of 25.1%, to $4.3m. It was a new record for operator.
The Interactive Revenues totaled $2.7m and grew by 5.8%.
The cost of living is on the rise
PlayAGS’s revenue from gaming operations accounted for $60.9m, or 7.6% of its total revenues for the third quarter. This is a record high for PlayAGS. Equipment sales accounted for the remaining $28.8m in revenue.
Selling, general, and administrative costs totaled $19.7m. Costs for depreciation, amortisation and equipment sales totaled $12.9m.
Costs of gaming operations were $12.0 million.
Total operating costs for the third quarter increased by 12.0% after adjusting for write-downs, research and development expenses, and other factors.
The operating profit was $15.0m up 53.6%.
The operating profit was almost completely wiped out by the interest expense of $14.0m. Interest income of $329,000 and other income amounting to $1.3m helped the figure rise slightly.
After income tax benefits of $484,000 the net profit for the third quarter decreased by 44.8% to $851,000
The adjusted earnings before tax, depreciation, and amortization (EBITDA), which is a measure of the company’s profit, also reached a new high at $39.5m, an increase by 16.0%.
H1 financial performance
PlayAGS has seen a 15.8% increase in revenue for the first half of its fiscal year. The gaming operations revenue increased by 8.9%, to $119.6 million. Equipment sales revenue totaled $53.3 million.
The total operating costs for the first six months increased by 9.1% to $146.1m. The income from operations was $26,8m.
Other costs such as $27.7m in interest expenses and $705,000 of tax benefits, when combined with the other types of income, brought H1’s net profit to $517,000. The H1 net income was $517,000, a substantial improvement over the $11.0m loss in H1 of 2022.
PlayAGS signed a deal to be a Caesars supplier during the first six months and Adam Chibib was appointed as PlayAGS’s new chairman. Robert Ziems was also appointed as the chief legal officer.
