AGS is aiming to build on the momentum of what the group has hailed as a “record setting fourth quarter” after across the board increases, capped off by a best net income performance, crowned the group’s fourth quarter.
Revenue through the October to December quarter rose 16.4 per cent to reach $81.73m (2021: $70.22m), with that figure also representing a four per cent over the $78.3m delivered during the prior quarter. This represents an eight consecutive quarter of sequential total revenue growth.
The company’s electronic gaming machines division continue to account for the bulk of that figure, with the segment witnessing a 16.8 per cent increase from $64.49m (2021: $75.33m).
Regarding this performance, the company said: “The continuous improvement in our EGM unit sales performance reflects successful execution of our coordinated strategy to broaden our global customer account penetration; accelerating returns on recent R&D investments intended to strengthen the breadth and diversity of our EGM game content and gaming cabinet portfolios; continued recovery in North American replacement unit demand; and complementary EGM sales into international markets.”
Table products recorded a 22 per cent uptick to $3.89m (2021: $3.18m), which AGS noted is a reflection of growing demand and further adoption of a range of its products.
Furthermore, on an interactive basis a slight 1.1 per cent drop to $2.5m (2021: $2.53m), with a seven per cent increase in real-money gaming revenue being offset by “an anticipated decline” in the group’s social casino output.
AGS added that the company is currently aiming to continue to “strategically refocus its technical and commercial interactive resources to optimise long-term profitable RMG revenue growth”.
Kimo Akiona, AGS Chief Financial Officer added, “We exited 2022 with net leverage inside of 4.0x, consistent with the expectations articulated at the start of the year.
“As we move forward into 2023, our organization remains squarely focused on maximising free cash flow and further reducing the amount of leverage on our balance sheet.”
In addition, AGS also posted “record” net income of $2.5m contrasted to a loss of $9.1m that was felt one year earlier, which is aligned to continued organisational focus on operating expense efficiency. This was offset by slightly higher interest expense resulting from the recent move higher in market-level interest rates.
Adjusted EBITDA increased 16 per cent to $37.3m (2021: $32.3m) driven by gains across the EGM and table games segments, which was partially drawn back by interactive struggles.
David Lopez, AGS President and Chief Executive Officer, stated: “Our record-setting fourth quarter results reflect the accelerating returns we continue to realise on investments made into our R&D, sales and product management teams over the past several years.
“Looking ahead to 2023, I see a set of company-specific growth catalysts forming within all three segments of our business that should allow our recent operating momentum to continue.”