AGS, a technology provider for the gaming industry, announced impressive financial performance for the final quarter and fiscal year of 2023, showcasing double-digit revenue expansion across its business units and robust Adjusted EBITDA.
The firm achieved unprecedented quarterly revenue of $94.2 million in Q4 2023, a 15% surge year-over-year. This accomplishment marks the eleventh consecutive quarter of double-digit year-over-year revenue growth for AGS. Each of the company’s core business segments – Electronic Gaming Machines (EGM), Table Products, and Interactive – contributed double-digit revenue increases, with EGM revenue climbing 14%, Table Products rising 24%, and Interactive exceeding 30% growth.
Overall Adjusted EBITDA reached a record $42.8 million, signifying the fifth consecutive quarter of double-digit expansion.
David Lopez, Chief Executive Officer of AGS, remarked on the financial outcomes, stating, “Our fourth-quarter results were outstanding, fueled by record quarterly revenue and Adjusted EBITDA contributions from all three of our business segments. The caliber and steadiness of our recent financial performance truly reflect the skills and commitment of our workforce, our progressively comprehensive and varied product offerings across our three business verticals, and our systematic approach to execution and profitability.”
Throughout 2023, AGS generated $94.2 million in revenue, a 15.2% increase compared to the prior year. Operating income experienced a substantial 19.3% jump, reaching $160 million.
Notwithstanding a significant 97.4% decline in net earnings to $6.7 million, AGS delivered a robust final quarter, surpassing projections with a 14.7% rise in adjusted EBITDA to $42.8 million. This remarkable showing was propelled by revenue expansion across all business divisions, particularly a record-shattering surge in equipment sales.
The firm’s recurring revenue flow, mainly derived from its gaming activities, attained $59.6 million. Contributing to the exceptional financial outcomes, equipment sales escalated by over 40% year-on-year to hit an unprecedented $34.6 million, driven by robust demand for both electronic gaming devices and table offerings.
This accomplishment follows a notable collaboration with Caesars Digital earlier in the month, which witnessed the debut of their joint slot game, Rakin’ Bacon Odyssey, in the New Jersey market.
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