PlayAGS Q3 Report Highlights Favorable Results
PlayAGS, a provider of gaming solutions for operators, has posted its financial results for the third quarter of the current year. During that period, the company recorded a satisfactory revenue increase.
PlayAGS’ Income Increased Dramatically
As announced by PlayAGS, the provider’s revenue for Q3 2022 sat at $78.2 million, which represents a 16% increase from Q3 2021’s results. Net income sat at $476,000, which is a dramatic increase from last year’s $1.8 million loss for the period. The company attributed the impressive results to its revenue growth, which complemented the $9 million operating income.
PlayAGS noted that the third quarter is the second consecutive quarter of positive net income.
Taking a look at how the PlayAGS’ segments performed, we see that most of the revenue came from its gaming operations. For reference, the company earned $56.6 million from gaming operations and $21.6 million from equipment sales.
In addition, the larger part of the revenue ($71.6 million) came from the company’s electronic gambling machine (EGM) business. This also marks a 16% year-on-year increase, mirroring the overall financial results. Meanwhile, the company’s table products earned $4 million, which marks a 30% YOY increase. Interactive revenue, on the other hand, had a modest increase of 1%, rising to $2.6 million.
The Company Is Optimistic about Its Future
AGS’s chief financial officer, Kimo Akiona, spoke about the results. He said that his team is content with the current balance sheet and the fact that the company ended with net leverage at 4.0 times.
Akiona noted that the stable business trends are reassuring, which is why he is optimistic that the company would be able to deliver its year-end net leverage target of fewer than 4.0 times. He added that PlayAGS hopes to further reduce leverage in the years to follow.
Meanwhile, David Lopez, the president and chief executive of AGS, said that the results reflect the momentum of the company’s business. He added that the favorable customer response to the company’s new line of products at the Global Gaming Expo makes him even more optimistic about AGS’ future.
Given the encouraging initial customer response to the broader and more diverse new product lineup we recently unveiled at the Global Gaming Expo, I am even more excited about what lies ahead for our company and its key stakeholders.
David Lopez, president & CEO, AGS
Two months ago, PlayAGS was almost purchased by Inspired Entertainment. However, the talks were called off as PlayAGS ended up changing its mind.
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