AGS reports record results in its first quarter

Gaming equipment and services provider PlayAGS its results revenue for the first quarter ended March 31, 2023, increase by 14% year-over-year to a record US$83.2m compared to US$72.9m in Q1 2022.

In its report for the first quarter of 2023, the company highlights:

• Total revenue increased 14% Y/Y to a record US$83.2 million; up sequentially for the ninth straight quarter
• Net loss improved Y/Y to US$334 thousand
• Adjusted EBITDA reached a first quarter record US$36.5 million
• Domestic EGM recurring revenue grew by 10% Y/Y; second consecutive all-time quarterly record
• Global EGM sales topped 1,100 units; unique customer count up by over 45% Y/Y
• Domestic Premium EGM mix eclipsed 15% at quarter end; footprint has grown for thirteen quarters in a row
• Table product revenue grew by over 15% Y/Y to a record US$4.1 million
• Remain on target to exit 2023 with net leverage in the range of 3.25x to 3.75x

Commenting upon the company's first quarter results, AGS President and Chief Executive Officer David Lopez said: "Our record-setting first quarter revenue and adjusted EBITDA performance is yet another testament to the way in which the strategic investments we have made in our people and products over the past several years have strengthened the underlying resiliency and vibrancy of our business.”

“Supported by what I view as the strongest team and most compelling new product lineup in AGS's history, I am extremely excited about what lies ahead for the Company and our shareholders."

Kimo Akiona, AGS Chief Financial Officer added: "As an organization, we remain singularly focused on optimizing our operating and capital deployment efficiency to further de-lever our balance sheet.”

“Supported by our strong first quarter financial performance, the growing demand for our high-performing for-sale products, and the relative stability observed across our recurring revenue operations, we remain confident in our ability to exit 2023 with net leverage inside of our targeted 3.25 times to 3.75 times range, with an intermediate-term focus on returning net leverage inside of 3.0 times."

Source: GMB