Las Vegas headquartered AGS is poised to continue with its most significant product launch year in the history of the company as it strives to achieve “meaningful long-term growth opportunities”.
Publishing its latest financial report for 2019’s full-year and final quarter, revenue for the latter increased 7.9 per cent to $73.7m (2018: $68.6m) helping its FY figure reach $289.6m (2018: $271m).
Praising strong electronic gaming machine sales and increased gaming operations, AGS saw increases across its core EGM and table products segments offset but a full year decrease in its interactive business of 26.3 per cent to $4.8m (2018: 6.6m). It’s said that this is driven by a strategic optimisation of user acquisition costs and restructuring within the business.
Net income of $1.4m increased year-over-year from a net loss of $10.3m due to an increase in operating income, with full-year losses narrowed to $11.7m from $20.8m.
Total adjusted EBITDA increased 18 per cent to a quarterly record of $37.3m (2018: $31.5m), driven by increased contributions across the EGM and table products segments, in addition to reduced operating expenses in interactive . AGS’ full-year figure finished at $146m, a 7.2 per cent rise from $136.2m.
David Lopez, AGS president and chief executive officer, commented: “Fourth quarter adjusted EBITDA growth of 18 per cent year-over-year was driven by strong EGM and table products performance, with continued demand for titles on orion portrait, as well as our super 4 progressive for table games.
“2020 is one of, if not the most, significant product launch years in AGS’ history, with the Orion Rise, the Orion Curve, the Starwall, and the Pax S card shuffler all debuting on casino floors this year.
“We feel confident that this lineup of new products, along with brand extensions and innovative offerings on our current portfolio, will provide meaningful long-term growth opportunities for AGS.”
Providing a future outlook, AGS anticipates generating total adjusted EBITDA of $148m – $153m in 2020, representing growth of approximately one per cent – five per cent compared to the prior year period. Capital expenditures are expected to be in the range of $67m – $71m.
The company’s full-year 2020 adjusted EBITDA guidance does not take into consideration potential regulatory risk related to a property in Texas, as previously identified. Additionally, the company’s guidance does not contemplate any potential impact related to the COVID-19 virus.