Gaming technology supplier AGS has released its financial results for the fourth quarter and full year 2020, showing total revenues of $167.0m, down 48.6% from $304.7m in 2019.
The supplier said the closures of its customers’ businesses caused by the novel coronavirus (Covid-19) pandemic were the main driver of the lower figures in 2020.
The majority of the year’s revenue came from the supplier’s electronic gaming machines (EGM) sales, which brought in $151.2m of the $167.0m total.
Table products brought in $8.0m, down 21.8% year-on-year from $10.2m.
Interactive, meanwhile, was the only business sector to experience growth during 2020, bringing in $7.2m in revenue throughout the year, up 48.6% on the $4.9m generated in 2019.
The supplier then paid $211.2m in expenses, down 24.9% year-on-year. Depreciation and amortization costs were the largest expense at $85.7m while selling, general and administrative costs were down 24.8% to $46.5m.
This led to an operating loss of $44.2m, compared to an operating profit of $23.7m in 2019.
After interest expenses and a $5.9m income tax benefit, total net loss attributable to PlayAGS was $85.4m, down from a net loss of $11.8m in in the previous year.
Including a foreign currency translation adjustment, the company’s total comprehensive loss was $88.1m in 2020, compared to $10.4m in 2019.
Total adjusted EBITDA was $71.7m, down 50.9% from $146.1m.
For Q4 2020, total revenues were down 40.1% at $46.6m, with the company showing a net loss of $17.2m compared to net income of $1.4m in Q4 2019.
Adjusted EBITDA for the quarter was down 42.8% year-on-year at $21.3m.
Adjusted EBITDA for the interactive segment in 2020 was $2.4m, compared to a loss of $2.4m for the segment in 2019.
“Looking beyond the many challenges faced throughout the year, one of the bright spots, to the extent there was one, is that the COVID-19 pandemic slowed down the pace of life,” said David Lopez, AGS president and chief executive officer.
“As a company, we used this time to refine our strategy and improve our operating efficiency, with a keen focus on three key areas; people, product, and processes. As a result, I believe we are better positioned today to achieve success across all three of our business segments than at any other point in our company’s history.”
AGS chief financial officer Kimo Akiona added: “Not only were we able to nimbly streamline our business to preserve liquidity at the onset of COVID-19, but we opportunistically shored up our balance sheet in May and successfully ramped operations as our casino operator partners gradually brought their businesses back online.”
“As I look ahead to 2021, I believe our strong liquidity position, improving product portfolio, and organizational alignment position us to achieve improved financial performance.”