AGS was boosted by growth across both its gaming operations and equipment sales businesses. Revenue from gaming operations climbed from US$170.3 million to US$201.8 million, while equipment sales more than doubled from US$41.7 million to US$83.5 million.
The company saw a 35.6% increase in revenue from electronic gaming machines, up from US$199.9m to US$271.0m. This was particular apparent in the fourth quarter, with AGS citing growth in early-entry markets such as Ontario, Mississippi and Nevada as well as continued penetration into ramping markets such as California and Florida.
Despite higher costs, AGS was able to cut its loss by more than half, with net loss for the year amounting to US$20.8m, down 53.8% from US$45.1m in 2017.
Reflecting on the results, CEO David Lopez was pleased with the figures, paying tribute to the company’s performance in Q4 in particular. “We ended our first year as a public company with a solid fourth quarter and 35% growth in annual revenue,” he said.
“Our continued top line growth, increased operating cash, and free cash flow generation reflects the industry-leading performance of our products and AGS’ unique position given how underrepresented we are in the market. These two factors contributed to our phenomenal growth in electronic gaming machines ending the year with more than 4,300 sold units, a 71% increase from fiscal 2017,” Lopez added.
He concluded: “With new product and content launches, further penetration of both new and early-entry markets, and international expansion, AGS is positioned for another high-growth year in 2019.”
Source: GMB / iGaming Business
