Publishing its financial performance for the three months to September 30, 2019, US gaming supplier AGS saw revenue climb five per cent year-on-year, to $79.4m, but recorded a net loss of $5.5m compared with Q3 2018.
Revenues were driven by record EGM sales of 1,391 in the quarter, up four per cent on the same period in 2018. Despite these sales, AGS saw a $5.5m loss having posted a $4.3m net profit last year, a drop the company attributed to its PlayAGS business citing “non-cash depreciation and amortisation as well as an increase in tax expense”.
The sales boost was down to the continuing success of the Orion Portrait cabinet and the launch of the new Orion Upright.
Table products revenue leapt 39 per cent to $2.9m, driven by increased progressive table game placements and “an increased footprint of the recently introduced Dex S card shuffler.”
David Lopez, president and CEO at AGS said in a statement: “Our third-quarter performance was underscored by the sale of nearly 1,400 EGMs – the most in our company’s history – as well as record performance in our Table Products segment.
“Ninety-two per cent of domestic EGM unit sales were from our Orion family of cabinets, including our latest addition, the Orion Upright, which accounted for approximately 300 sold units in the quarter.
“After a successful G2E last month, we are looking forward to launching our premium lease-only Orion Rise cabinet and Starwall LED merchandising display, as well as our highly anticipated Orion 49C, Pax S card shuffler, and Bonus Spin Xtreme progressive system. We believe this robust suite of products will help drive growth in 2020 and beyond,” he said.
Based on year-to-date progress, AGS said it expected to generate total adjusted EBITDA of $145m to $150m in 2019, representing growth of approximately 6-10 per cent, when compared to the prior year period.
“We continue to expect 2019 capital expenditures to be in the range of $65m to $69m, compared to $66.2m in 2018, reflecting an expectation for an increase in our EGM installed base,” the company said.