AGS has asserted a belief that it is “better positioned today to achieve success” across all three business segments than at any other point in the company’s history, despite the impact of the ongoing pandemic on the group’s Q4 and FY performance.
The Las Vegas headquartered firm says that it has refined its strategy with a focus on the three core areas of people, product and processes, as AGS eyes a successful exit from 2020’s struggles.
The comments come as the group publishes its latest trading update, with fourth quarter 2020 revenue decreasing 40.1 per cent to $46.2m (2019: $77.7m). This reflects the impact of COVID-19 on AGS’ EGM and table product recurring revenue streams.
Revenue in the group’s EGM segment during Q4 dropped 42 per cent to $42.3m (2019: $73.7m), with table products down 7.5 per cent to $2.5m (2019: $2.7m) and interactive up 27 per cent to $1.6m (2019: $1.3m).
The quarter also sees net loss finish up at $17.2m compared to income of £1.4m a year earlier, reflecting the impact of COVID-19 pandemic on the firm’s operations, coupled with higher interest expense related to incremental debt financing. Adjusted EBITDA declined 42.8 per cent to $21.2m (2019: $37.2m).
David Lopez, AGS president and CEO, commented: “2020 was a year full of unprecedented challenges, the likes of which required the unwavering commitment of a passionate, loyal, and hardworking team to successfully overcome.
“To that end, I am extremely honoured by and thankful for the tireless efforts put forth by so many of our AGS team members to ensure we not only survived the COVID-19 pandemic, but put ourselves in a position to emerge a stronger, more resilient company.”
Adding: “Looking beyond the many challenges faced throughout the year, one of the bright spots, to the extent there was one, is that the COVID-19 pandemic slowed down the pace of life.
“As a company, we used this time to refine our strategy and improve our operating efficiency, with a keen focus on three key areas; people, product, and processes. As a result, I believe we are better positioned today to achieve success across all three of our business segments than at any other point in our company’s history.”
On a full year basis revenue dropped 45.1 per cent to $167m (2019: $304.7m), with its EGM division down 47.6 per cent to $151.7m (2019: $289.6m), table products declining 21.8 per cent to $7.9m (2019: $10.1m), and interactive up 139.6 per cent to $3.7m (2019: $1.5m).
Net loss for the year grew from $11.7m to $85.3m, with adjusted EBITDA plummeting 50.9 per cent from $146m to $71.6m year-on-year.
Kimo Akiona, AGS chief financial officer, added: “I am incredibly proud of the way our team came together throughout 2020 to face the unprecedented operational and financial hurdles introduced by the spread of COVID-19.
“Not only were we able to nimbly streamline our business to preserve liquidity at the onset of COVID-19, but we opportunistically shored up our balance sheet in May and successfully ramped operations as our casino operator partners gradually brought their businesses back online.
“As I look ahead to 2021, I believe our strong liquidity position, improving product portfolio, and organizational alignment position us to achieve improved financial performance.”