AGS has posted its Q2 2023 financial report, showing total revenue of $89.8m, a 17% increase from the $76.6m generated in Q2 of last year. Net income, however, decreased by 44.8%, going down from $1.5m in Q2 2022 to $851,000 in this year’s quarter.
Total revenue also improved by 8% since Q1. This represents the company’s 10th consecutive quarter of sequential steady growth.
Adjusted EBITDA grew by 16% year-over-year to a record $39.6m, up from $34.1m.
When breaking down revenue segments, electronic gaming machines (EGM) increased by 17.3%, rising from $70.5m in Q2 2022 to $82.7m in Q2 2023.
Table product revenue advanced 25.1% year-over-year increasing from $3.5m to a record $4.4m.
Alongside the increases in revenue among EGMs and table products, interactive gaming revenue was also up 5.8% year-over-year from $2.6m to $2.8m.
Meanwhile, total revenue was up 17.3% overall, rising from $76.6m in Q2 2022 to $89.8m in Q2 2023.
Income from operations saw a 53.6% increase from $9.8m in Q2 2022 to $15.1m in Q2 2023.
This revenue graph shows a slow yet steady growth across the financial quarters.
Despite all of the increases, AGS did report a slash of 44.8% in net income, this was due to higher market-level interest rates, increasing the company’s interest expense by approximately $6m.
Commenting upon the supplier's second-quarter results, AGS President and CEO David Lopez said, "Our record-setting second-quarter financial performance clearly demonstrates the strength of our products, team members and strategy, which is creating significant momentum within all three segments of our business.
“The unique combination of a growing portfolio of high-performing products and an exceptionally talented team has me excited about what lies ahead for our company in 2023 and beyond."
Kimo Akiona, AGS CFO, added, "During the second quarter we delivered on our commitment to further de-lever our balance sheet through a combination of adjusted EBITDA growth and free cash flow generation."
