This is another consecutive record for PlayAGS, beating out Q1’s then-record revenue of $83.2m.
David Lopez, PlayAGS president and chief financial officer, said this quarter was helped by consistent growth in all three of PlayAGS’ segments – electronic gaming machines (EGM), table products and its Interactive division.
“Our record-setting second quarter financial performance clearly demonstrates the strength of our products, team members and strategy, which is creating significant momentum within all three segments of our business,” he said.
Most of the revenue came from the EGM segment, which totalled at $82.6m. This was up by 17.3%.
Table products revenue generated the highest increase, at 25.1% to $4.3m. This was another record for the operator.
Interactive revenues totalled at $2.7m, up by 5.8%.
Expenses tick up
Revenue from gaming operations made up $60.9m of the total revenue for the quarter, a rise of 7.6% and yet another record for PlayAGS. The remaining revenue – $28.8m – came from equipment sales.
Turning to operating expenses, selling, general and administrative expenses totalled at $19.7m. Depreciation and amortisation costs totalled at $18.6m, while cost of equipment sales hit $12.9m.
Gaming operations generated costs of $12.0m.
After considering write-downs and research and development costs, total operating expenses for the quarter were $74.7m, a rise of 12.0%.
This left the operating income at $15.0m, up by 53.6%.
Interest expense at $14.0m all but wiped out the operating income. But interest income and other income totalling $329,000, aided the figure slightly, bringing it to a pre-tax total of $1.3m.
Following income tax benefit at $484,000, the net income for the quarter was $851,000, a decrease of 44.8%.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also hit an all-time high, at $39.5m – an increase of 16.0%.
H1 financial performance
Looking at PlayAGS’s half-year results, revenue was $173.0m, up by 15.8%. Gaming operations revenue grew 8.9% to $119.6m, while equipment sales revenue totalled at $53.3m.
Total operating expenses for the six months came to $146.1m, up by 9.1%. This left the income from operations at $26.8m.
Various further costs, such as interest expense at $27.7m and income tax benefit at $705,000, combined with other forms of income brought the net income to $517,000 for H1. This was a significant improvement from the loss of $11.0m in H1 2022.
During the six months, PlayAGS agreed to a supplier deal with Caesars and appointed Adam Chibib as its new chairman. It also named Robert Ziems as its chief legal officer.
Original article: https://igamingbusiness.com/finance/quarterly-results/playags-record-q2/
