Las Vegas-based gaming equipment manufacturer PlayAGS reported strong first quarter results, with revenue up 12.6 percent and net loss down 99 percent.
CEO David Lopez attributed the results to gains in electronic gaming machine and table unit revenue.
The company made $20.2 million worth of electronic gaming machine equipment sales in the first quarter, with more than half of the units sold to early-entry markets. Overall electronic gaming machine unit sales were up 22 percent year-over-year.
AGS also reported its strongest quarter to date in its tables products segment.
The “table game business is really starting to show its strength this year,” Lopez said during the company’s quarter one earnings call this week.
He attributed some of the growth to the company’s acquisition of regional slot route operator Integrity in February.
A report led by Stifel analyst Brad Boyer said the company’s results were in line with expectations, and said it believes management is “carefully acquiring talent and simultaneously assembling a long-term roadmap” to ensure success.
Lopez discussed the company’s plans to open a new research and development office in Reno in July, which he said would bolster cabinet and content innovations.
“We’re looking to do more quality content,” he said. “It’s not our goal to just push out more content at G2E (gaming convention). I think it’s more about that diversity of thought.”
Lopez also said the company is planning to launch four more games within the next 60 days, with a steady release of games afterward.
“We expect to be live in roughly six more markets within the next couple of quarters, including New Jersey, Spain, Mexico and Sweden, and nine to 12 additional new markets in 2019,” Lopez said.
Lopez expects to increase penetration in Canada, Pennsylvania, Nevada and Ohio, keeping the company on-track to reaching 5 percent market share.
AGS reported a net loss of $100,000, compared to $9.5 million in the first quarter of 2018. Revenue rose to $73 million from $64.9 million in the year-ago quarter .
The company closed up 38 cents to $21.47 on Friday.
First-quarter revenue and earnings for Las Vegas-based PlayAGS Inc., a Las Vegas-based gaming equipment manufacturer. (New York Stock Exchange: AGS)
1Q 2019: $73 million
1Q 2018: $64.9 million
1Q 2019: $100,000
1Q 2018: $9.5 million
Loss per share
1Q 2019: 0
1Q 2018: 30 cents