The Covid pandemic and its “unprecedented operational and financial hurdles” were the key force behind the decline, according to CFO, Kimo Akiona.
Electronic Gaming Machine (EGM) sales contributed $151m of the company’s $167m total revenues, which in itself was a 47.6% YOY drop. The AGS interactive division was the only one to perform positively, it reported $4.8m, up 48.6%.
The company used the period to reportedly refine its business efficiencies. Operational expenses were down 24.9% year on year, but despite this, AGS recorded an overall loss of $44.2m, compared to profit of $23.7m in 2019.
EGM performance did start to show signs of a bounce back in Q4, however. Total EGM revenues for the three months to December 31 2020 were down 42.5%, whereas the FY decline was 47.6%.
As of December 31 2020, the company estimates that 90% of its 16,268-unit US installed base and 36% of its 7,985-unit international installed base was active.
For Q4 2020, overall revenues were down 40.1% at $46.6m. AGS reported a net loss of $17.2m, compared to net income of $1.4m in the same period 2019.