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PlayAGS sees significant year-on-year improvement in Q2 results

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Gaming machine provider PlayAGS has reported a revenue of $66.8m in its second quarter 2021 results, an increase of 298.1% year-on-year.

Results were largely positive in comparison to Q2 2020, a period affected by the novel coronavirus (Covid-19) pandemic.

A majority of this total, $55.0m, came from gaming operations, while equipment sales made up the remaining $11.7m.

Electronic gaming machines accounted for $61.1m of the revenue, an increase of 338.4% year-on-year. $49.4m of this came from gaming operations and $11.7m was generated by equipment sales. Table products and interactive gaming made up the remaining $5.6m of the revenue.

Meanwhile, the expenses for the quarter came to $59.4m, a rise of 30.4% year-on-year.

Depreciation and amortization generated the most expense, at $18.6m. Selling, general and administrative costs came in second, at $16.3m, followed by the cost of gaming operations at $9.6m. The remaining expenses came from cost of equipment sales, research and development and write-down charges.

This left operating revenue in the black, unlike Q2 2020. After considering the expenses, the total income from operations amounted to $7.4m, a rise of $36.1m compared to Q2 2020.

After accounting for interest expenses, interest income and other income costs, though, the business made a total total net loss of $3.8m. However, this was a year-on-year improvement of $39.7m.

Commenting on the results, Kimo Akiona, AGS’ chief financial officer, said: “The continuous improvement being achieved as a result of our enhanced game content development execution, upgraded product management capabilities, and refined capital deployment processes, sets us on a path to deliver more consistent financial performance, improving our capital returns and leverage profile, and, most importantly, strengthening shareholder value over time.”