AGS, a gaming machines manufacturer, has announced its second quarter results for 2022. It reported a 1% annual domestic revenue increase to achieve a record $46.2m, while total revenue accrued $76.6m.
The installment of electronic game machines (EGMs) doubled from last year’s second quarter and grew 15% sequentially. The revenue per day of the EGMs showed a 6% annual increase, topping $30 for the fifth consecutive quarter.
This caused a $1.5m net income for AGS, the first net profit it has achieved since the fourth quarter of 2019, indicating the company is returning to its pre-pandemic performance levels. Adjusted EBITDA rose by 6% year-on-year to hit $34.1m, while table products generated $2m.
If the company continues at the pace that Q2 has demonstrated, then AGS will meet a 2022 net leverage target of just under 4.0x, another positive result.
AGS President and CEO David Lopez was pleased with the company’s second quarterly performance. Lopez commented: “Our second quarter results reflect the growing returns we are realizing as a result of the significant investments made into our R&D, sales and product management teams over the past 24 months.”
Sources for AGS’ revenue streams were primarily generated from: premium game growth initiative; realization of returns on recent R&D investments; recovery in North American replacement unit demand and improvement in the Mexican macroeconomic environment.
Lopez continues: “Our investments have accelerated the operating momentum we are seeing within the business, as reflected by the material year-over-year growth in our reported Q2 2022 net revenues, net income and adjusted EBITDA.”
