Gaming solutions specialist AGS has posted operating results for its first quarter ended March 31, 2019. Total revenue increased 13% to $73m year-on-year, driven said the firm by continued growth in its electronic gaming machine (EGM) segment, primarily in early-entry markets such as Michigan, Saskatchewan, Pennsylvania, and Massachusetts.
The firm also cited continued penetration into ramping markets such as Florida and California in addition to the contribution of leased EGMs acquired from Integrity Gaming Corp as contributors.
Looking specifically at EGM equipment sales, revenue increased 33% to $20.2m thanks to the sale of 1,024 units, of which nearly 55% were sold into early-entry markets.
Record gaming operations revenue, or recurring revenue, grew to $52.9m, or 7% year-over-year, driven by the acquisition of Integrity, growth and performance of the company’s international installed base, and an increase in table products revenue. AGS also saw its net loss attributable to PlayAGS Inc slow to $0.1m from $9.5m in Q1 2018.
AGS CEO David Lopez told investors: “I’m pleased to report another solid quarter of growth for AGS, with total revenue of $73m up 13% year-over-year, driven by double-digit gains in EGMs and Tables. Sold EGM units grew 22% year-over-year and our tables products segment reported its strongest quarter to date, driven by our award-winning progressive platforms.
“Our EGM recurring revenue installed base grew 14% year-over-year to 27,308 units, driven by the inclusion of 2,500 EGMs from the Integrity acquisition, which we closed in February of this year. With numerous levers to build momentum — including strategic investments in R&D to continue building a strong, diversified, and expanded product portfolio, as well as many new and under-penetrated domestic and international markets — AGS is well-positioned for continued long-term, meaningful growth.”