Las Vegas based AGS is set to continue its most important year of product launch in the company’s history as it aims to create “meaningful long-term growth opportunities”.
Publishing the latest full-year and final quarter financial report for 2019, sales for the latter rose 7.9 percent to $73.7 m (2018: $68.6 m) tQo $289.6 m (2018: $271 m) for its FY figure.
Despite solid electronic gaming machine revenues and expanded gaming activities, AGS saw growth across its core divisions of EGM and table goods balanced but a full-year decline in its digital business from 26.3% to $4.8 million (2018: 6.6 million). This is said to be motivated by strategic management of the expense of user acquisition and market restructuring.
Net income of $1.4 million rose year-over-year from a net loss of $10.3 million due to an increase in operating income, with full-year losses decreasing from $20.8 million to $11.7 million.
Net adjusted EBITDA rose 18 percent to a quarterly high of $37.3 million (2018: $31.5 million), led by increased contributions across the divisions of EGM and table goods, in addition to decreased digital operating expenses. AGS’ full-year figure finished at $146 million, rising 7.2 percent from $136.2 million.
AGS President and Chief Executive Officer David Lopez commented: “Fourth quarter adjusted EBITDA growth of 18 per cent year-over-year was driven by strong EGM and table products performance, with continued demand for titles on orion portrait, as well as our super 4 progressive for table games.
“2020 is one of, if not the most, significant product launch years in AGS’ history, with the Orion Rise, the Orion Curve, the Starwall, and the Pax S card shuffler all debuting on casino floors this year.
“We feel confident that this lineup of new products, along with brand extensions and innovative offerings on our current portfolio, will provide meaningful long-term growth opportunities for AGS.”
AGS anticipates achieving a cumulative adjusted EBITDA of $148 m–$153 m in 2020, reflecting growth of about one percent–five percent compared to the prior-year period, offering a future outlook. Capital spending in the range of $67 m-$ 71 m is anticipated.
The company’s full-year 2020 adjusted EBITDA guidance does not, as previously identified, take into account any possible regulatory risk related to a Texas property. However, the company’s advice does not envisage any potential impact relevant to the COVID-19 virus.