PlayAGS posts Record EGM Sales in Q3-2018

Canadian casinos responsible for 24% of PlayAGS record slot machine sales in Q3-18.

Canadian Casinos buy 24% of PlayAGS Record Slot Machine Sales in Q3-18Breaking a record is a great accomplishment for anyone. When it’s a business, and the record pertains to maximizing the profit margin, it’s particularly fulfilling for the executive team, and their shareholders. Thus, the flamboyant enthusiasm of PlayAGS CEO David Lopez in the company’s third-quarter earnings conference call last week is understandable, to put it mildly.

PlayAGS, Inc. is one of North America’s leading manufacturers of Class II and Class III electronic gaming machines (EGMs). Class II EGMs are the slot machines found in most tribal-owned casinos. Class III slot machines fall within the regulatory guidelines of most corporate-run state and provincial casinos. PlayAGS also provides a suite of best-in-class table games, as well as a portfolio of free-to-play social casino games for mobile.

PlayAGS Posts Record Slot Machine Sales in Q3-2018

From its head office in Atlanta, Georgia, Mr. Lopez led the Q3 earnings call alongside company CFO Kimo Akiona. After directing attendees in an introduction to the meeting, Lopez wasted no time in delivering the good news.

“I’m pleased to announce that we reported another solid quarter, fueled by exceptional sales volume resulting in 1,332 EGMs sold, the most in our company’s history,” said Lopez. “Total revenue was a record, at $75.5 million, up 34% year-over-year, which was the result of continued demand and market penetration of our high-performing products.”

Orion Cabinets Contribute to PlayAGS posts Record EGM Sales in Q3-2018He went on to segment the quarter’s growth by product type. All told, EGMs made up 95% of the company’s total Q3 earnings. A staggering 53% of the EGMs sold in the three-month period were their Orion Portrait cabinets, which have been a consistent, long-term growth driver for the company. The cabinet currently offers 23 slots titles. That figure is expected to nearly double with the addition of 18 new titles by Q2-2019.

One of AGS’s more recent designs, the Orion Slant cabinet, was responsible for 20% of Q3 sales. The CEO feels this cabinetry will also become a major market driver, having already placed nearly 800 units (including trials) in the first five months of production.

Canadian Casinos Responsible for 24% of Record EG Sales

Canadian sales also reached a record high for PlayAGS. Lopez attributes the increased to the third quarter marking the company’s first sales to casinos in Alberta, as well as heightened interest from existing clients in other parts of Canada.

“This quarter marked our early entry into Alberta, Canada, as well as solid progress in other Canadian provinces such as Ontario. Overall, 24% of third quarter sold units came from Canada,” said Mr. Lopez.

In response to shareholders’ questions about the Canadian market, Lopez adds that he believes their slot machines are, “performing amazingly in Alberta as far as the feedback that we’re getting so far. They’ve just been rock star numbers.”

He’s especially excited to see what happens in the coming year. Initial slot machine sales are always higher as casinos stock their floors with new machines. It’s the re-orders that will determine just how impressed their new Canadian casino clients are with their products.

When we see the reorders…” he explains, “it’s always really indicative of what they think of our product and our product performance.”

Historically, reorders have been a “fantastic” source of revenue for PlayAGS. Although Lopez was unable, or unwilling, to predict just how much the company’s revenue might stand to increase between now and Q3-2019, it’s safe to say the company is expecting to boast record slot machines sales again come next November.

Author

  • Trevor Hallsey

    Passionate webmaster, devoted card game enthusiast, and proud son of the Great White North. With over a decade of iGaming experience, Trevor has launched numerous web portals to share his passion for game theory and all things Canadian gaming. With this site, he acts as a fact checker and mostly writes at the intersection of gaming and finance. He aims to offer statistical insights and unique information that you might see lacking in similar sites.

    🎓 Computer Science Enthusiast
    🏒 Maple Leafs Fanatic
    💜 Jiu-Jitsu Purple Belt

    View all posts