Gaming supplier PlayAGS, Inc. (AGS) reported a 34 percent jump in revenue after posting the highest quarterly game sales figures in the company’s history. The supplier, which went public last January, reported that cash flow also grew by 14 percent during the quarter.
The results were fueled in part by the company’ expansion into the Canadian provinces of Alberta and Ontario, as well as table-game placements at the new MGM Springfield in Massachusetts. AGS CEO David Lopez commented during the company’s third-quarter conference call that the company will soon expand into more new markets.
“This quarter marked our entry into Alberta, Canada, as well as solid progress in other Canadian provinces such as Ontario,” Lopez said. “Overall, 24 percent of third quarter sold units came from Canada. Corporate orders comprised approximately 50 percent of (slot machine) sales revenue in the quarter.”
During the quarter, AGS sold 1,332 slot machines to 60 different operators in the U.S. and Canada—the most in the company’s history.
“2018 is almost in the books and I am very proud of the team for delivering such strong results in our first year as a public company,” Lopez said. “AGS is still very underrepresented in many markets both domestically and internationally, which presents significant long-term growth opportunities for the company.”
In the quarter that ended September 30, AGS said its total revenue was $75.5 million, an increase of $19.1 million. Net income was $4.3 million in the quarter and the company had earnings per share of 12 cents. That compares to a consensus average expectation from Wall Street analysts of 3 cents per share.
“AGS is one of few stocks we cover today that can drive growth with little to no help from the broader gaming climate,” Deutsche Bank gaming analyst Carlo Santarelli told investors, according to CDC Gaming Reports.
