Group revenue for 2023 amounted to $356.5m (£280.6m/€328.4m). This was 15.2% higher than the $309.4m reported by PlayAGS in the previous 12-month period.
The supplier posted double-digit percentage growth in each of its three divisions: Electronic Gaming Machines (EGM), Table Products and Interactive. Group spending was higher year-on-year as PlayAGS expanded its operations, but such was the impact of revenue growth that the supplier ended 2023 in the black.
PlayAGS also reported a strong end to 2023, posting record revenue and adjusted EBITDA for all three operating segments. Q4 was also the 11th consecutive quarter of double-digit total revenue as the supplier’s growth strategy continued to pay dividends.
“The strength in our fourth quarter results was broad-based, with all three operating segments setting new quarterly records,” PlayAGS CEO and president David Lopez said.
“The quality and consistency of our recent financial performance is a true reflection of our incredibly talented and focused team, increasingly deep and diverse product offering across all three segments, and the improving efficiency and effectiveness of our execution.”
EGM continues to lead the way for PlayAGS
Breaking down the results, and beginning with the full-year figures, gaming operations drew the most revenue. Here, revenue climbed 7.3% to $240.2m, while equipment sales revenue was also up 35.9% to $116.34m.
In terms of segmental performance, EGM was again the main source of revenue. For 2023, EGM segment revenue amounted to $327.1m, a rise of 15.0%, driven by an increase in equipment sales.
Table Products revenue also jumped 18.7% year-on-year to $17.7m. Again, this was down to a sharp rise in equipment sales during 2023, with PlayAGS reporting an increase in its overall installed based.
In addition, PlayAGS posted a 15.6% rise in Interactive revenue to $11.8m during the year. This, it says, was helped by the launch of more content throughout the year and the addition of new B2C partners around the world.
Net profit reaches $7.4m
As for spending, operating costs in 2023 were 10.2% higher at $299.1m. Expenses were up in almost all areas, with depreciation and amortisation the main outgoing at $76.9m. Just behind was selling, general and administrative costs at $73.2m.
PlayAGS also reported heavy interest costs, with these amounting to $57.4m for the year. However, revenue growth meant it was still able to report a small pre-tax profit of $1.7m, compared to a $10.3m loss in 2022.
The supplier paid $1.3m in income tax but also benefitted from positive $7.0m foreign currency translation adjustment. As such, it was left with a net profit of $7.4m, in contrast to 2022’s $6.3m loss.
In addition, adjusted EBITDA for 2023 climbed 14.7% to $159.0m, with a margin of 44.6%.
Record Q4 sets up PlayAGS for further growth
Turning to Q4 and PlayAGS reported several new quarterly records. Group revenue for the three-month period was 15.2% higher at $94.2m, an all-time high for the supplier.
Gaming operations revenue edged up 3.8% to $59.6m, while equipment sales revenue was also 42.4% higher at $94.2m.
Revenue also reached new record highs in each of the supplier’s core segments. For EGMs, revenue climbed 14.1% to $86.0m, Table Products revenue was 24.1% higher at $4.8m and Interactive revenue increased 34.4% to $3.4m.
Group operating costs were up 14.4% to $78.1m, while interest expenses reached $15.1m. As such, pre-tax profit for the quarter reached $1.1m, down 31.3% from $1.6m at the same point in 2022.
PlayAGS paid $1.0m in income tax but noted a $2.2m positive impact from foreign currency translation adjustment. This left it with a net profit of $2.2m, a drop of 42.1% from the previous year.
However, adjusted EBITDA was 14.7% higher at $42.8m, with margin reaching 45.4%.
Original article: https://igamingbusiness.com/finance/full-year-results/revenue-growth-helps-playags-return-profit-2023/
