PlayAGS reports revenue increase of 16% for Q3

PlayAGS increased its third quarter revenues by16 per cent year-over-year to US$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% 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.

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 US$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 US$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 commented: “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,” Lopez added.

Kimo Akiona, AGS Chief Financial Officer commented: “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.”

AGS Q3 highlights:

• Global EGM Sales Eclipsed 1,000 Units for the First Time Since Q4 2019
• Domestic EGM Recurring Revenue Topped US$45 Million; Up 4% Y/Y and 8% Ahead of Q3 2019
• Domestic Premium EGM Footprint Increased 18% Sequentially; Eleventh Consecutive Quarterly Increase
• Domestic EGM RPD Exceeded US$30 for the Sixth Consecutive Quarter
• Domestic EGM Installed Base Expanded for the Second Straight Quarter; Up by over 300 Units YTD
• Table Products Adjusted EBITDA Reached a Record US$2.6 Million
• On Pace to Achieve Year-End 2022 Net Leverage Target of less than 4.0x

Source: GMB