AGS releases Q3 results, enjoys strong revenue growth

The designer and developer of equipment, services and solutions, powering the global gambling industry, AGS, unveiled its third quarter financial results. Earlier this week, the company released details regarding its performance for the third quarter ended September 30, 2023, posting strong revenue growth and an increase in adjusted EBITDA.

Overall, AGS' revenue in Q3 this year hit $89.4 million, up by a solid 14.2% when compared to the $78.3 million result from the same period last year. Besides the strong revenue, the company reported strong growth across all three of its operating segments.

A breakdown provided by AGS revealed that its EGM operations were responsible for the lion's share of the revenue in Q3 this year. Overall, EGM revenue in Q3 hit $81.9 million. This result, when compared to the $71.6 million posted in Q3 2022, marked an increase of 14.3%.

Stronger growth was observed by AGS' Interactive segment. Overall, the company's Interactive revenue for the recent trading period hit $3.1 million, up by 20.2% when compared to the $2.6 million result from the third quarter of 2022.

According to the recent report, AGS' Table Products generated $4.4 million in revenue for the third quarter of this year. Compared to the $4 million result from the corresponding period in 2022, this year, an increase of 8.7% is observed.

Kimo Akiona, AGS' Chief Financial Officer, commented on the topic in a statement. "Our record-setting Q3 2023 Adjusted EBITDA and free cash flow performance enabled us to reduce our net leverage to 3.4 times at quarter end, placing us inside of our targeted year-end range of 3.25 times to 3.50 times a full quarter ahead of schedule," he explained.

Finally, Akiona pointed out: "We remain intently focused on leveraging our commitment to capex discipline and working capital efficiency to consistently generate free cash flow, which combined with our operating momentum, should allow for further net leverage reduction in the quarters ahead."

David Lopez, AGS' President and Chief Executive Officer, shared the excitement of the company's Chief Financial Officer. "We delivered another solid quarter of execution in the third quarter, with our product momentum and focused team producing performance that far exceeded the trends observed across the broader domestic gaming landscape," he said.

Lopez spoke about the company's participation in the Global Gaming Expo. Finally, he highlighted AGS' diverse portfolio and dedicated team of experts that contributed to its exceptional performance during the latest trading period.

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